Our finances are important aspects to keep track of. Whether you are supporting a family or only yourself, keeping track of our financial life is important. We always want to make sure we are in a good standing to provide for ourselves and possibly others. There are ways where a bank or other financial institution can help out during times of need. One important aspect to track is mortgage payments. For these payments, some people take out loans to pay off as time goes on. Since these can be payments of greater value, it can be harder for people to pay for them on the spot right away. A loan gives them the opportunity to pay for it over a longer period of time. If you are still having financial difficulties, you may be able to modify your loan. This may give you the flexibility you need to pay back your money over a longer period of time. A loan modification can greatly benefit someone. Mortgage refinancing is another useful tool that people can use when they are involved in a difficult financial time.
Once you settle on a loan modification, you will need to collect the required documents for the process. These documents include a financial statement, such as a profit and loss statement, a personal or business bank statement, pay stubs from each individual that earns a wage in your family, personal or business tax returns, a current utility bill that proves you reside in the declared house and a hardship letter. A hardship letter is required so that you can explain your reasoning for a modification. This can detail your current financial situation to see if it is enough for getting approval for a loan modification. You should explain why you are unable to currently pay your mortgage.
What’s the difference between a loan modification and mortgage refinancing?
Loan modifications and mortgage refinancing are two separate processes that individuals can go through to help them financially. It can give them a change to their current arrangement and situation that can prove to be more convenient considering their current financial status. While both processes can assist people during times of financial distress, they are different. Mortgage refinancing is a process that involves a new loan. Instead of requesting a change to a current loan, an individual is seeking a completely new loan. However, loan modification is a change. Through loan modification, an individual is seeking an adjustment to a current loan that they have taken out. This modification can be sought to improve their financial situation.
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.