Stop arkansas home foreclosure through a loan modification: what you should know

If you are struggling to pay your mortgage, you can stop Arkansas home foreclosure with loan modification through your lender or the federal Home Affordable Modification Program (HAMP). 

When you are trying to stop the foreclosure of your Arkansas home with loan modification, the first step is to discuss your options with your lender. Your lender or HAMP may modify your loan by lowering your interest rate, reducing your loan principal or changing your loan terms.

It is important to understand that each case is different and will end with different results. Sometimes, loan modification may not be a viable option. However, in most cases, your lender will be eager to offer you a way to stay in your home and pay the mortgage.

Do you owe more than your home is worth? Find out here.

Each lending institution will have its own application process. Most generally, required documents may include taxes, paystubs, bank statements and a hardship letter. These documents are requested to prove your financial hardship.

To qualify for HAMP, you must meet these requirements:

• You got your mortgage before Jan. 1, 2009
• You owe $729,750 or less on your house
• You can prove financial hardship
• You are employed and can make a modified payment

When you stop Arkansas home foreclosure with a modification, you may start with trial payments or probation period for the modified terms of the loan. Once you maintain the terms of the loan during this probation period, the new terms will then be made permanent. You cannot be late on payments or break any of the terms of the loan during this time.

To get more information on HAMP, talk to a housing counselor with the U. S. Department of Housing and Urban Development (HUD). If the housing counselor or your lender recommends you sell your home, Reply! can connect you with a real estate agent who specializes in pre-foreclosure sales.