Is it financially advantageous for lenders and borrowers to work out strategic modification deals instead of losing money in foreclosure? The answer is no. Contrary to belief, banks or mortgage servicers don't like it when borrowers ask for loan modifications. Why? Because they perform calculations to determine the Net Present Value (NPV) of your loan. If foreclosing your property generates more value for them, they will be reluctant to offer loan modifications. Thankfully, struggling homeowners can still apply for loan modifications in Miami, as long as they create error-free applications. Mortgage loan modification applicants are prone to making silly mistakes that reduce their chances of getting what they want. Here are four common mistakes they often make.

Every borrower applying for loan modifications in Miami has to send "hardship letters" to their lenders. Many borrowers get confused by the name of these letters. A "hardship letter" isn't something you write to explain the financial or personal hardships of your life to your lenders. These letters are meant to make strong impressions on the lenders who will be reviewing your case. What do the lenders want to hear? They want to hear why you will never make late payments again once they modify your loan. So, instead of listing your personal hardships in these letters, share your gross monthly income statements. Also, mention an accurate estimate of what you can repay and when.

Lenders review hardship letters very closely. They want to learn everything about your credit score, debts, gross income, pending bills, and other financial details. Include all financial information that increases your chances of securing loan modifications in Miami in the hardship letters. The more evidence/facts you provide, the more likely your mortgagee is to modify your mortgage repayment plans. Never withhold crucial financial information from your lenders. Never lie about having more or less financial problems. Taking such actions while applying for loan modifications is considered fraud.

Many homeowners apply for loan modifications in Miami and then stop making payments. Just because you've submitted an application doesn't mean that you get to halt your existing mortgage repayment schedule. You should keep making regular payments until the lender officially accepts your loan modification application. If you stop making payments abruptly, your credit score will suffer a lot. You'll fall even more behind on your payments. Even worse, the lender may reject your loan modification request by labeling you as an unreliable borrower.