When you speak to your mortgage company about a loan modification, there are various documents that they will request from you. Some times you will be asked questions over the phone and need to refer to these documents so it does help to keep them all in one place for quick reference each time you need to speak to your lender. Some documents may take some time to compile, so it helps if you are prepared.
* You will need all documented income and expenses. This is usually any income from employment, unemployment, tips, alimony, and interest income. This would be in the form of pay stubs, dividend statements or cancelled checks. If you cannot provide these or they are unavailable a signed statement explaining your income source and giving the addresses of the sources is usually required.
* Collect anything that is related to your income and expenses, even if you don't think it is important.
* Find your last six pay stubs.
* If you get paid in cash or sporadically average this amount out so that you have an average monthly income. You can also request that your accountant or bank prepare a financial statement for you.
* Put together two to three years of W2's and tax returns.
* You will need a Minimum of three to six months of bank statements.
* Get together all the mortgage paper work that you have, this includes any letters that you have received from the bank as well as the envelopes they came in (for postmarks).
* Get a note book or folder together and write down every time you speak to your lender.
* Now you will need to find all your bills and compile them together. This includes:Credit card payments, car loans, child support, medical bills, student loans all your utility bills and anything else that is an out going financially.
When you are going through this paper work it is also important to look for additional paper work which would indicate why you might be behind on your payments, for example if you recently became divorced, a copy of the divorce decree, or if you were ill and incurred many medical bills, you will need a print out from the hospital billing department or the doctors office.
Some banks can be more thorough some may not need as much information, but remember most will want documentation faxed or mailed to them to prove your financial status even if you gave your financials over the phone, so it is important that you are have all your paperwork ready and stick close to what is documented.
