Stay In Your Home While Attempting Modification

President Obama put a home loan modification plan in process, but it seems to be placing some untoward restrictions regarding who may qualify. On top of dealing with the prospect of foreclosure, the stress is multiplied by the stringent requirements of qualifying for a modification. Many, despite putting their ducks in a row, still lost their homes.Goading the LendersThe government offered incentives to various financial institutions to encourage them to assist borrowers, wrapped in foreclosure proceedings, to keep their homes. Many of the lenders did not acquiesce with the governments plan and were even unwilling to offer any type of assistance. The lenders did not appreciate the risk factors in granting additional credit to lenders who were already in trouble.Congress TriesThen the U.S. Congress got into the act and made a decree that there would be changes made in the modification process. But, the pending health care legislation stole all the thunder and the modifications to the mortgage modification program were very slow in coming about.Homeowners Slowly SinkingMeanwhile, as Congress and the Obama administration attempted to work out what modifications were necessary to make the plan work, homeowners were struggling to keep their heads above water. Soon, some homeowners realized that several moves could be taken to successfully forestall the foreclosure process. Just how long these maneuvers would delay the process came to depend on a number of factors.Methods for Forestalling ForeclosureTo delay foreclosure, homeowners can adopt these strategies:Hardship LettersHomeowners should send hardship letters to the mortgage holders detailing the reasons for the lapse in monthly payments. It is crucial to include any circumstances that have affected the homeowner such as job loss, spousal death, catastrophic medical reasons, etc. Any thing specific to creating a financial hardship that precluded meeting monthly obligations.HearingsThe homeowner should file a petition with the foreclosure court system so that they can make the dispute and hardship a part of the public record. At that point, other factors could be brought into play to delay the procedure.DocumentationHomeowners should take a fine tooth comb to all documents. During the housing boom, lenders were shoving loan documents through the legal process using robo-signers and robo-notaries and many mortgage documents are full of errors. These can be used to raise true ownership issues.Disputes Delay PaymentsWhile it does take some deft handling, all of these processes can gain time for the borrower to get their financial situation in order. Also, while these procedures are being undertaken, payments on the mortgage could possibly be delayed, minimized, or put into an escrow account. This could help relieve some of the financial pressure on the home buyer.Foreclosure Is a Legal ProcessHomeowner would well serve themselves to know as much about the foreclosure laws in their respective states. They could realistically proceed through the legal requirements by themselves. An attorney could help, but an intrepid homeowner could probably do as well. Also, it would save the borrower a lot of money.Being CarefulIf a beleaguered homeowner took the time to gain some knowledge, there are legal recourse they would have to delay foreclosure while granting themselves some financial relief. Even if he or she is jobless with no significant income. Being careful and knowing the law will help tremendously.