A loan modification can really help homeowners in financial hardship. What a loan modification does is change the terms of the loan to make your monthly mortgage payments more affordable. In order to get a loan modification approved you must submit a loan modification application. This application includes several forms for you to fill out and return to your lender. It is crucial that you know how to fill out the loan modification forms properly in order to enhance your chances for approval.
Here are the various loan modification forms you will need to fill out.
The Borrowers Statement:
This statement includes your basic personal information such as your name, social security number, address, place of employment and other basic information. This form should be easy for you to fill out. Just double check to make sure everything is accurate.
The Hardship Letter:
A hardship letter is where you make your case for why you need a loan modification. You will want to write a brief but convincing letter explaining your financial hardship. You also need to show your willingness to correct your financial situation and demonstrate your ability to make lower mortgage payments on time.
The Financial Statement:
A financial statement lists all of your monthly income and expenses. This is where you need to demonstrate to your lender why you are having financial difficulty meeting the current monthly payments but also show how you would be able to afford lower modified payments. It is very important that you are able to demonstrate both of these facts.
On the cover sheet submission form you will request new loan terms and a lower mortgage payment amount. If you figure out what you can afford to pay ahead of time you will be in a much better position to negotiate with your lender if necessary.
It is very important to be accurate and thorough in filling out your loan modification forms. You are preparing a case for yourself as to why you are a good candidate for a loan modification. This involves not only showing that you are in financial hardship but that you will also have the means to meet lower monthly payments under a loan modification agreement. It is very important that you accurately list your income and expenses and present your case on the forms in a clear, concise manner. If you do this, you have a good chance of having your loan modification request approved