Mortgage modification is on the minds of many current homeowners. Varying reasons will dictate why a homeowner is looking for a mortgage modification; however, each person will follow a similar process in obtaining one. There are definite steps to achieving a successful loan modification and they are outlined below.
1. Decide if you are going to negotiate with the loss mitigation department of the financial institution yourself, or if you are going to hire a company or lawyer to handle the process.
2. If you are going at it alone, you will need to learn as much as you can about modifications. You need to know what the bank is looking for, guidelines to qualify for a modification, and what kind of paperwork they will require.
3. Call your bank and request to be evaluated to see if you qualify for a loan modification. Be prepared to wait long periods of time and be transferred among various people and departments. This can be time consuming and frustrating, especially when many borrowers are making similar requests.
4. If given the go ahead, write your hardship letter. This is an important part of the mortgage modification and is often what gets your foot in the door. If the lender reads your hardship letter and it does not provide the information they are looking for, you may be facing an uphill battle right from the start. When writing your hardship letter keep it factual, without emotion, straight forward and usually not more than one page. You need to explain the situation that lead to the default and how a modification of the mortgage will allow you to be on time with your payments in the future.
5. Submit your hardship letter along with any other information the lender requires. They will typically ask for financial items such as recent bank statements, W-2s, tax returns and similar documents.
After you have submitted all your documentation, you will have to check up on the status of your request. The employees in the loss mitigation department are often very busy and handle many files at the same time. Do not be surprised if they "misplace" some of your paperwork or ask you to submit additional documents. The best thing to do, if you are attempting mortgage modification on your own, is to consistently call and make sure they received your documents and ask if the status has changed. Keep good records of who you talked with, the date of the calls and the status information provided by the lender.
1. Decide if you are going to negotiate with the loss mitigation department of the financial institution yourself, or if you are going to hire a company or lawyer to handle the process.
2. If you are going at it alone, you will need to learn as much as you can about modifications. You need to know what the bank is looking for, guidelines to qualify for a modification, and what kind of paperwork they will require.
3. Call your bank and request to be evaluated to see if you qualify for a loan modification. Be prepared to wait long periods of time and be transferred among various people and departments. This can be time consuming and frustrating, especially when many borrowers are making similar requests.
4. If given the go ahead, write your hardship letter. This is an important part of the mortgage modification and is often what gets your foot in the door. If the lender reads your hardship letter and it does not provide the information they are looking for, you may be facing an uphill battle right from the start. When writing your hardship letter keep it factual, without emotion, straight forward and usually not more than one page. You need to explain the situation that lead to the default and how a modification of the mortgage will allow you to be on time with your payments in the future.
5. Submit your hardship letter along with any other information the lender requires. They will typically ask for financial items such as recent bank statements, W-2s, tax returns and similar documents.
After you have submitted all your documentation, you will have to check up on the status of your request. The employees in the loss mitigation department are often very busy and handle many files at the same time. Do not be surprised if they "misplace" some of your paperwork or ask you to submit additional documents. The best thing to do, if you are attempting mortgage modification on your own, is to consistently call and make sure they received your documents and ask if the status has changed. Keep good records of who you talked with, the date of the calls and the status information provided by the lender.
SHARE
