Questions RE: Loan Modification Experience?

"How can a stated income client qualify for a loan modification?" We don't accept "statements" for modification. To my knowledge no lender does. HOPE is a joke even though I really got behind it and pushed it very hard. It is not bringing much hope. I say this with sadness because I am a 1-888-HOPE-NOW provider and receive many calls referred to me by them. Be very careful about "Loss Mitigation Professionals" who are not attorneys and who do not work for a lender. Seriously, most of them have no experience and no business playing with people's lives. Now, more than ever, I am getting calls from people who have paid "Loss Mitigators" hundreds or thousands of dollars, in advance, with absolutely no results.

I am working with a loan modification company and they are getting amazing results. It is important that professionals talk to the decision maker at the bank.  You don't have to be behind in payments. It is more important to proof that the borrower will be able to repay the loan with the newly negotiated terms. The hardship letter explaining why the can't afford the current payments or the upcoming adjusted payments is another critical document the client need to provide. Loan modifications are even done on investment properties. I hope this helps.

Dawn,

You got two good answers. I only wanted to add that current values are not a factor in negotiating with the lender trying to change the existing loan. If you have the ability to pay, you basically have a contract and can be held liable for following the terms.

When you can't pay (and declining value is not a factor, but loss of income, illness, decrease of income are) then you would be better off finding an attorney, who specializes in cases like that.

I am not a guru, but I did not quite understand the "stated" part here. If htis is not a refinance, and people already have a loan, there should be no difference. They simply go to the Lender (better have the attorney do that) show the hardship, show that they would be able to do it with the terms they are asking, and "stated" or "full docs" should not be a factor, but I may totally wrong here, so check it with the attorney.

Dawn, they can "state" anything they want to but if it cannot be verified we are not going to accept it. It's often harder to do a modification or short sale because the tenant is much less co-operative than they were when they were begging for the money to get into the home. Sorry that reads so crassly. They have the burden of proof. Just saying, "we cannot afford our payments" is not qualifying evidence thereof. Yes, we want a hardship letter along with the proof of everything contained in it. (By we I mean people who are truly charged with mitigating loss on the behalf of their investors.)