A loan modification is what lenders are searching for to save their clients from their current economic hardship. The lender is searching for a way to keep their clients in their homes; lenders don’t want to go through the burden of a foreclosure. A foreclosure, in the eyes of the lender, isn’t helping either the client or themselves. With the economy being as it is today, lenders are being more open minded about assisting clients in doing a loan modification.
The process of a loan modification can take some time. All the documentation that is collected from the client is basically the same as applying for the original home loan. Here is a list of documentation that you are going to need for the loan modification, but all lenders are different and the documentation maybe different with your lender. This required documentation is if you are going to utilize a loan modification company, and not taking care of the negotiation yourself.
Mortgage statement- This is the statement that you receive every month from the mortgage lender. The mortgage statement is to verify that the loan is delinquent and to verify the account number. Also this is used to verify the signers on the current contract.
Mortgage statement 2nd (if applicable) - This is the statement that you receive every month from the mortgage lender. The mortgage statement is to verify that the loan is delinquent and to verify the account number. Also this is used to verify the signers on the current contract.
Authorization to Release Information- This is a form that is required from the lender stating the modification company you’re working with has the ability to speak on your behalf.
Hardship letter (signed) - This is a letter that will be required by the lender for the reason why you’re interested in a loan modification. I suggest that you describe your hardship in great detail. Good hardship reasons are death in the family and a family member has recently lost their employment due to a lay off or termination.
Last two years W2’s (if self employed need tax returns all pages) - This is going to be a requirement from the lender. This will show where your financial situation has changed.
Wage-earners - 2 current paycheck stubs- This is going to be required by the lender. If your wage has changed from the original loan this will show that you are unable to satisfy the current contact; solidifying the hardship letter.
Bank statements (last three months) - This is needed to show your liquid assets. This will also show that the deposits in the account have changed, and also the average daily balance has changed. If the deposits and the average daily balance have decreased, this will verify that you need a loan modification.
Business bank statements (last three months if self employed) - This is needed to show your liquid assets. This will also show that the deposits in the account have changed, and also the average daily balance has changed. If the deposits and the average daily balance have decreased, this will verify that you need a loan modification.
A loan modification can be a process that you might not want to be part of; if you can find a loan modification company that will take the stress of getting into contact with the lender for you that is what I strongly suggest you do. I would also suggest that you work with a loan modification company that will guarantee a return of the cost; there will be a cost to do the loan modification for you. If the company can’t get your loan modified, then they will refund that cost back to you. Make sure that it is a company that is creditable, since the rise of loan modification there are companies that are stating that they can do the loan modification for you. Just make sure that are doing what they say they are going to do.
If you are feeling the pinch of a delinquent home loan and stressed bout losing your home to foreclosure, we are here to assist you. We offer a money back guarantee if we can't get your delinquent home loan modified.
