Requesting for mortgage debt forgiveness – Essential steps you should follow
Mortgage debt seems to be the biggest debt for the Americans. While talking about mortgage debt forgiveness, you need to know that every lender will not agree to forgive your debt. However, there are few lenders who will agree to forgive mortgage-debt. The mortgage lender will forgive only a small portion of your debt. With proper budgeting and by keeping a track on your spending, you will be able to manage the mortgage payments and reduce mortgage-debt problems.
4 Essential steps to request for mortgage debt forgiveness from a lender
Have a look at the 4 essential steps to request for mortgage debt forgiveness from a lender.
1. Talk with your lender if the situation is problematic – While requesting for mortgage debt forgiveness, you may talk with your mortgage lender if you find that the situation is problematic for you. With the help of a loan modification program, you can ask the lender to change the terms and conditions of your loan so as to make the loan payments within your means. A mortgage lender will work with you on debt forgiveness if you have taken the necessary steps to fulfill your responsibility and informed the lender about your financial situation.
2. Make the necessary effort to meet the compulsion – The next step that you should do is to make the necessary effort to meet the compulsion. It is not possible to get the approval of debt forgiveness unless you’ve tried to meet your compulsion. During short sale, your home usually must have been on the market for at least 90 days. So, the amount with which you’ve purchased your home and sold it will be forgiven in case of debt forgiveness.
3. Inform your lender that you cannot meet your obligation – There is no mortgage lender who will agree to forgive your debt unless you prove them that you cannot meet your obligation. You may show your difficulty when you miss out the payments, lose your job or face financial burden. Thus, the mortgage lender may agree to forgive your debt to at least some extent.
4. Request your mortgage lender about debt forgiveness – It may happen that you’re not satisfied with loan modification and, as such, are still facing difficulty to make the payments. In this situation, you may request your mortgage lender for debt forgiveness. Thus, if your lender agrees for debt forgiveness, you will no more have to worry about making the debt payments in full. However, it is not possible that the lender will forgive your entire loan amount. He will consider forgiving only a small part of your loan in order to make the payment within your means.
Thus, by following the above steps, you will be able to request for mortgage debt forgiveness from your lender and make the payments affordable for you.