First Thing’s First
Get Your Finances Out into the Open
Whether your troubled financial picture is more of a minor setback or a major catastrophe, the most important thing is to sit down and evaluate your situation right away. Has an event like unemployment, death, serious injury, divorce, or natural disaster has caused an economic landslide in your personal life?
If your answer to any of the above question is yes, then listen up – because you could be in a world of hurt a few weeks or months from now if you don’t act soon. Many times, people in your situation end up losing their house, and you definitely don’t want that to happen to you.
At the first opportunity, sit down with a calculator and copies of your financial info. Make a list of your regular monthly bills and expenses, not forgetting any type of payment that you normally do each month. Subtract from your new monthly income to see if you can feasibly get by on what you’re now making.
If it just doesn’t work out no matter how you try, then contact your bank and ask about loan modification for your home mortgage. The conversation will include detailed questions about your personal finances, so have your information ready before you pick up the phone.
The exact documents you’ll need depend on what kinds of income and expenses you’ve got. But generally speaking, you need a copy of last year’s tax return, income verification, bank statements, bills, and so on. Also prepare a list of your monthly expenses to talk about on the phone.
There’s nothing to be ashamed of if you need this type of help right now. Don’t delay your phone call or let anything keep you from getting the assistance you need you’re your lender. Home loan modification can be a new start for you.