What Should I Do If I’m Not Qualified for Home Affordable Refinance and Modification

By | March 7, 2015

Those who face home foreclosure problems have plenty of options in their bid to salvage their home. Facing economic and financial uncertainties, many of today’s population have been caught in this predicament as they struggle to cope with mortgage payments, and end up defaulting on them.

When the situation gets serious, these homeowners end up facing mortgage foreclosure problems, something that is normally settled through home refinancing. But what happens when one does not qualify for home refinancing or mortgage modification plans?

What are the other solutions available for these individuals that need to stop home foreclosure at the soonest?

Let us look at some of the available options available to these people:

1. The utilization of the hardship letter

This is a proven-effective method if one cannot qualify for mortgage modification. Using the hardship letter, one can successfully negotiate with one’s creditors by explaining clearly why he or she has not been able to service the mortgage payments and defaulted on them. This method has been utilized by thousands of people facing foreclosure trouble successfully in the past, why not you be one of them as well?

Keep in mind that relevant information such as job termination letter, medical receipts (if you have been facing medical problems) and other important documents should be attached together with your hardship letter to help stake your claim against foreclosure proceedings. Negotiating with your creditors is probably the best option for someone who cannot qualify for refinancing benefits, thus make use of the hardship letter to your benefit!

2. Request a hearing at a local circuit court

This would not stop foreclosure permanently, but could help your postpone proceeding for several months at the very least. Some lucky ones have stayed in their homes for close to three years as there are plenty of such cases pending at the local circuit courts and you could probably stay on in your home until your case is heard. While you wait for your case to be heard, you could utilize the time given to you to work out your financial situation, and probably get your mortgage payments back on track!

3. Look for assistance from debt management firms and agencies

These firms are professionals that understand mortgage matters extremely well, thus they could probably give you a proper solution after assessing your financial situation. A good debt management agency could also negotiate with your creditors on your behalf, and if you are lucky, you might be able to refinance your home after all with help from such agencies!

Nevertheless, beware of the many scams out there today that call themselves debt management agencies, but do not qualify as one. Always make sure that the firm that you are dealing with is legitimate, and has a proven track record to back it!

The above-mentioned methods should be able to help you in the case that you are not deemed eligible for mortgage refinancing or loan modification plans from either the government or private institutions. As you can see, there are plenty of other workable solutions for you to opt for, thus do not despair, and work hard on the solutions above!

With some luck, you would be able to your overcome foreclosure issues soon and end up safe and sound in a place you can call home!

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