If you are facing a financial hardship and having trouble making your monthly mortgage payments, then a loan modification may really help your situation. A loan modification will lower the monthly payments on your mortgage by either lowering the interest rate, extending the length of the payment schedule, forgiving part of the principal or maybe a combination of the above. If you are already several months behind, I am sure you would like to get fast approval on your loan modification. Here are 5 tips for fast approval loan modifications.
Tip #1 Become familiar with your lender's loan modification criteria before applying for a loan modification
All lenders have certain criteria that must be met in order to be approved for a loan modification. Make sure you are familiar with these and follow your lender's guidelines for the loan modification application process before submitting your loan modification application.
Tip #2 Submit a compelling and convincing hardship letter
One of the major criteria for getting approved for a loan modification is that you must demonstrate that you are facing a financial hardship that makes it extremely difficult for you to meet your monthly mortgage payments. Examples of acceptable hardships include loss or reduction in income, divorce or death in the family, high medical costs, and forced job relocation. Whatever your particular financial hardship is you need to craft a compelling and convincing hardship letter outlining your hardship.
Tip #3 Provide documented proof for your hardship
If you can attach supporting documents to prove your hardship, this will also help speed up your loan modification approval process. If you are facing high medical costs you can attach copies of bills. If you are facing a divorce you can attach documentation for that. Documented proof will save the lender time and add a lot of credibility to your hardship case and should help you with your goal of a fast approval for your loan modification.
Tip #4 Do not omit or present inaccurate income, expense, debt or asset information
The lender will want proof of your income, expenses, debts and assets. The lender will be verifying all this information so be sure everything is accurate. Any omissions, errors, or attempts to misrepresent your financial position will delay your application and you could even be denied the loan modification.
Tip #5 Submit an accurate and complete loan modification application
It is absolutely critical that you submit an accurate and complete loan modification application. Follow the checklist that your lender provides with the loan modification application and make sure you submit all of the forms and additional information that is requested. Check for accuracy before you submit your final application.