Your Finances Are Devastated. Time For A Modification or Short Sale
You’ve been laid off, divorced, ill, a family member died, savings depleted, your work hours reduced and, to top it all off, the increased cost of living has kicked you in the other set of cheeks. Your paycheck is definitely not what it used to be.
Life hasn’t been kind. Your mortgage payments are a few months behind and you are deathly afraid of what might happen next.
Regardless, you have pulled your head from the sand long enough to call your lender to request a modification or a short sale packet. Now what? Here are a few tips to help you along the way.
- Review, read and understand all the instructions contained in the packet sent by the bank.
It is critically important to follow the instructions provided. If not, you may run the risk of no action being taken on your file.
- Do not leave blank spaces.
Many people overlook filling in the totals on the financial worksheets. Do not make that mistake. It delays processing of the file. If the particular question does not apply mark it “n/a”.
- Every document should be signed and dated where necessary.
If you had to use an additional sheet of paper to tell your story make sure it is signed and dated by ALL borrowers. Many documents expire after 30, 60, 90 days. This is one way for the bank to know when to request updates.
- Submit the most current document requested.
Don’t submit a paystub that is 6 months old or, if you are self-employed, a profit and loss statement that is a year old. The bank usually wants your two most recent pay check stubs and a profit and loss statement that covers the most current quarter.
- Bank Statements
Submit every page of the original statement even if the page is blank. Many banks will email you a monthly statement containing their address and logo. That’s the one the bank wants.
- Write your loan number in big, bold letters at the bottom of each document. In case your paperwork is separated the loan numbers will be helpful in reassembling your file
- Stay Organized
Keep a log of every activity related to the modification and/or short sale process. Log every conversation (date, time, name of person to whom you spoke, phone number) related to the transaction. Keep a copy of every document you submit and make sure you can find it in a jiffy if you need it. You know how Murphy’s Law works. The one document you don’t keep (or can’t find) is the one you are going to need at some point.
Follow up, follow up, follow up! Don't forget to keep a record of each follow up. After all, it’s your home. You are depending on a successful short sale or modification to keep it.
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