Applying for a Loan Modification

Today I am going to give some practical information and some suggestions on Loan Modifications.

Starting with the requirements of a Loan Modification.

FIRST STEP

In order to qualify for application

 for a Loan Modification you will

 need to answer YES to the

 following questions:

1. Your Home (the one you want a modification for) IS your primary residence.

2. Is the amount you owe on your first mortgage equal to or less than $729,750?

3 . You Have Experienced Some Sort of a Financial Hardship*

* Examples of Hardship:

• Loss of Employment or Income Source
• Divorce
• Medical Issue(s)
• Death (resulting in a financial hardship)
• Adjustable Rate Mortgage (adjusted and is WAY higher than you expected or can afford) 
• Subprime or Predatory Loan
• Increase in Family Size
• Anything you can not control that has resulted that causes you to be in a difficult financial situation

4. Did you get your current mortgage before January 1, 2009?

5.  Income/Employment – You have an income and it will support what the     lower monthly payments will be. 

6. Are you the owner of a one to four-unit home?

SECOND STEP

Call your Servicer and ask them to send you a Loan Modification Package. You can find out who your Servicer is by looking at your Mortgage Statement. I have an entire list of Servicers HERE

THIRD STEP

Start Gathering the following Information so you have it READY when you get your package. 

• YOUR MORTGAGE STATEMENT

• YOUR TAX BILL

• YOUR ELECTRIC BILL OR SOME SORT OF UTILITY BILL

• AT LEAST 30 DAYS PROOF OF INCOME (WHAT YOU MAKE NOW)

• 2 YEARS TAX RETURNS

• YOUR MOST CURRENT BANK STATEMENT

• A WRITTEN EXPLANATION AS TO WHAT YOUR HARDSHIP IS/WAS

FOURTH AND HARDEST STEP

WAIT FOR YOUR PACKAGE

FIFTH STEP

Read over what your package says and fill out any forms they may have sent you. Here is a “Checklist” that might help:

1. Make sure all forms are complete and able to be read

2. Make sure all Forms are Signed and Dated

3. Review all documents requested and put in order they asked for them.

4. Write down the TRACKING NUMBER of the package you are sending back to them.

DON’T GET SCAMMED YOU CAN DO THIS YOURSELF!

THAT COMPLETES THE “HOW TO APPLY” PART OF A LOAN MODIFICATION