Are you stressed by a mortgage payment you can’t afford? Does foreclosure seem like a very real possibility? There is assistance available in the form of reduced payments if you know what to do. We will discuss how you should go about preparing to make a call to your lender for loan modification. Since you can only apply once, you want to do it right the first time!

We will discuss 3 critical steps to approval:

1. Convince your lender that you need and are a worthy recipient of assistance in the form of loan modification. This is done with a hardship letter, which is a concise explanation of your financial hardship. You need to compile an explanation of the causes of your precarious financial situation and inability to pay your mortgage payments. You also need to present the changes you have made in your budget that would allow the responsible payment of a lower payment and your commitment and resolve to do just that. Your goal is to help the lender understand your predicament and want to help you.

2. Prepare your financial statements and budget. To establish your eligibility, your lender will require a detailed worksheet or your monthly financial expenses and income. A major component of this budget preparation is the new monthly payment you are requesting. Do you know how to go about calculating your target payment?

3. Compile the necessary documents that your lender will need to review and validate your application for a loan modification. Be completely sure that you have correctly filled out the forms and attached the correct documentation. Be aware that your application will be one of thousands of others and only the completely correct packages will get quick review and a good opportunity for approval.

Don’t be intimidated by the process; complete each step carefully and you can receive the loan modification help you require from your bank. They will receive financial incentives for each loan modification they complete, so if you meet the eligibility requirements, they are motivated to grant your approval. You need to only take the first step today to be on the way to a new lower monthly payment and staying in your home.

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We live in a troubling time regarding consumer debt. For years (or perhaps for decades), Americans have become accustomed to spending more than they earn. Through the miracle (or curse) of a credit card and all its charging privileges, more and more people have come to join the financial club for those drowning in debt with no end in sight.

Bankruptcy may seem like a frightening scenario, but there are other scenarios that are more frightening, and they may already be part of your everyday experience. Here are 10 simple signs that your debt is out of control and that you may need to sit down with a financial adviser or even a bankruptcy lawyer:

– you and your spouse fight on a daily basis because your debt is out of control and you have no ideas for how to fix it.

– you wake up in the middle of the night or have trouble sleeping to begin with because you’re constantly worrying about your looming debt problems

– you avoid answering the phone or feel nervous every time it rings because you know it’s probably a bill collector trying to get payment from you

– you take a cash advance from one credit card to pay another credit card

– you avoid visiting the doctor despite some troubling symptoms because you cannot afford the co-pay on your insurance

– you constantly are asking your friends for small loans in order to buy groceries or make your car payment

– you’re having difficulty paying the minimum payments on your credit cards

– you avoid getting important preventive care such as a dental checkup because you can’t afford the dentist bill

– you have to use your credit card to make a small purchase at a fast food restaurant or to buy gas

– you are starting to sell off some of your treasured belongings in a garage sale or at a pawn shop to raise some much-needed cash

If some of these scenarios are familiar to you, you definitely have a financial crisis on your hands. You don’t have to be starving or losing your house in order to consider bankruptcy as an option, either. If you can’t see yourself paying off your debts during the next few years while maintaining a reasonable standard of living, you should at least consider the possibility. No one is saying that you should take bankruptcy likely or that you should make a decision without thinking things through. However, speaking with a professional is a good idea.

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Bankruptcy has helped many families out of overwhelming debt by giving them a fresh financial start. However, there are many situations in which bankruptcy is not the best solution available. Bankruptcy may be the wrong solution for you, and you need to study your situation closely. Here are five cases in which bankruptcy is not the best option:

1. You can pay off your debts within a few years while maintaining a reasonable standard of living

Sometimes having some discipline and setting a budget is all you need to do in order to pay off your debts within a reasonable time. You don’t need to starve yourself, but if you can stick to a simple plan and eliminate your debt within the next few years, then bankruptcy may not be necessary after all.

2. Your most worrisome debts will not be eliminated in bankruptcy

You should be aware that some kinds of financial obligations do not usually go away when you file bankruptcy. If you are most concerned about student loans, child support obligations, or criminal fines, then bankruptcy is not the solution. In most cases, these financial obligations will remain.

What about federal income taxes? That depends, but be aware that in many cases they will not be discharged.

3. You don’t want to lose your assets.

When you file Chapter 7, you will need to liquidate any nonexempt assets in order to help pay for your debts. You may not want to give away these assets, such as a second house or an expensive car. Finding a way to pay off your debt without bankruptcy can help you keep these assets safe from creditors.

4. Most of your debts are secured by collateral.

If your unsecured debts are only a small portion of your total obligations, then bankruptcy doesn’t make sense. Chapter 7 will not eliminate your responsibilities such as paying off your mortgage or car loans. If you want to keep the house, you’ll have to keep making the mortgage payments. Otherwise, you can just lose the house without having to declare bankruptcy.

Chapter 13, on the other hand, can help you reorganize the debt and catch up on your mortgage payments over the next few years.

5. You don’t really owe creditors the money.

This may not occur in those cases, since so many people have legitimate debts. Still, if you do not think you owe something, by all means fight it instead of giving up and declaring bankruptcy.

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For more information please visit: http://www.floridalawattorney.com