Loan Modification 101

By
Services for Real Estate Pros with Real Estate Consultants

Just when I thought I was all out of options, and truly believed that I was going to lose my home to foreclosure, I came across Your Basic Guide to Do-it-Yourself Loan Modification. I had contacted several loan modification companies however; their dues were the same cost as my monthly mortgage payment, and without guaranteeing any results. If I could not afford my monthly mortgage payments I was unsure as to how these companies thought I could pay them their service fees. In addition, my lender did not give me the time of day when I explained my situation over the phone; they said they needed to see proof of my financial hardship in writing. Your Basic Guide to Do-it-Yourself Loan Modification provided me with step by step, easy to understand instructions. It is not filled with a bunch of loan and financial jargon. The manual uses simple English, so that you know exactly what you need to do, to make your loan modification presentable and successful. The truth is not all borrowers will qualify for a loan modification. Nevertheless, the Your Basic Guide to Do-it-Yourself Loan Modification does an excellent job of highlighting what lenders are looking for when considering a loan modification. There are several important tips that will provided be in the manual but I'll list a few crucial ones.

First, be organized. Have your documents in order to present that bank. Banks don't want to bother with people who do not have a good understanding of their own finances. Your Basic Guide to Do-it-Yourself Loan Modification will provide a detailed list of all documents the lender may request from the borrower. Have all the documents on hand such as tax returns, bank statements, pay stubs, and mortgage statements. The borrower should review all their financial documents and be prepared to discuss their financial situation with their lender.

Second, you must indicate why your current monthly payment is not affordable and how a new lower monthly payment will be affordable and sustainable in the future. The lender will want to see via financial documents how a lower monthly payment will ensure that the loan will be paid back in full. Being able to prove a lower monthly payment will be affordable increases the likelihood of a loan modification.

Third, you must be able to demonstrate that you have suffered a financial hardship that has made your current mortgage payment unaffordable. Provide your bank with a written Hardship Letter, explaining the circumstances that have lead you into financial hardship. Job loss, divorce, death of a family member, and illness are all reasonable explanations. You must be very convincing in your Hardship Letter; lenders receive hundreds daily, and are looking for candidates who have really experienced hardship. The manual provides some examples of Hardship Letters, and a template to follow.

Finally, you must be able to prepare and submit a complete loan modification package to the lender. If your documents are in order from the beginning then half of your work is done. Remember that banks do not want your home to go to foreclosure anymore than you do. Lenders are willing to negotiate.

Remember that there are millions of people who are experiencing financial hardship and require a loan modification, yet don't know where to begin. Your Basic Guide to Do-it-Yourself Loan Modification is an easy guide that will bring you one step closer to a loan modification, and years to enjoy the home you love.


This post was sponsored by Loan Modification Loss Mitigation News

Comments (0)