Five Document Homeowners Need to Modify Their Existing Mortgage

It is always amusing to work with first time home buyers when the lender gives them a list of documents required to apply for a loan.  You can see the stunned expression on their faces; however, I have found homeowners are just as surprised when they are seeking to renegotiate a distressed mortgage.  The owner needs the following:

1. Their loan number and copies of recent payment history
2. A brief explanation of the situation.  Be prepared to explain if the current financial situation is temporary or permanent.
3. A list of all household expenses such as utility bills, food, insurance, etc.
4. Recent income including pay stubs or tax returns
5. A list of other debt obligations such as credit card, car loans, etc.

I spoke to a loan officer a few weeks ago.  He said that the general home owner did real well with #2 but many time, he never hears from them again until it is too late.  They either don't want to put forth the effort to supply the documentation or they haven't kept good records.  It seems owners are too easily just walking away.