Begin the process immediately. Don’t hesitate until its too late. At first, loan modification was offered only to those who had defaulted but now the process is also applicable on those who are enduring serious financial difficulties. Check if you are entitled to a loan modification so you can start there and then.
Asses your financial standing by taking into account all revenue streams and your accumulated expenses. That will give a fair idea of whether you will be able to carry on paying your bills. Decide if you can handle the process on your own or whether you will need legal help. In most scenarios, loan modification process can be tricky to handle so it is important to hire an experienced professional before approaching your lender. Your adviser will make a plan which you can present to your lender. Spending a certain amount on an attorney is better than seeking a loan modification that piles further misery on you.
Get in touch with your lender. Explain to him your current state and reveal all possible details which have made it difficult for you to carry on paying your current loan. In most cases, you will need to write a letter of hardship, where you will detail not only about financial health but will also assure the lender that you intend to fulfill your commitments. You intentions must be clear as any ambiguity can discourage your lender from helping you out.
Apart from the hardship letter, you will need to attach all your financial details. The lender will want clear proof that you are indeed suffering from a financial crisis and that the only way to move forward is a modification on your loan. This procedure will include your salary slips, and figures of all your expenses.
Fill the loan modification form and review the new terms and conditions. Make sure that all the information is correctly incorporated, making your case stronger.