Loan Modification Explained

The Loan Modification

• Are you behind on your mortgage payments?
• Did you lose your job because of the economy?
• Has there been a sickness or death in the family?
• Are you in the Military and being forced overseas?
• Are you looking for a solution?

The Solution is a LOAN MODIFICATION

A mortgage loan modification is where your existing lender agrees, through a series of negotiations and paperwork, to change the terms of your mortgage so that you will have an affordable payment, a reasonable fixed term interest rate, as well as the ability to repay this loan on time. It is your best alternative to saving your home and creating a win-win situation with the bank. If done correctly often the bank will come back with a loan modification agreement that will benefit you as the homeowner as well as the bank.

Who is a potential candidate for a loan modification program?

The loan modification is increasing with popularity with banks, the government and especially the homeowner. The exciting part is that guidelines are increasing to include more homeowners. At the moment, there are a couple requirements to be considered for a loan modification:

• You must have a verifiable source of income. The key word is verifiable. The bank will ask you for documents to substantiate your income. Pay stubs, income tax returns, w2’s and bank statements just to name a couple.
• The loan modification is being done for your primary residence not an investment property. Although, as I am writing this banks are becoming more lenient to provide a loan modification for an investment property.
• There has been a reduction in your income or an increase in your expenses do to a hardship. A hardship could be a divorce, sickness, death, job loss, medical bills, or a birth. A common hardship, among homeowners is an adjustment in your rate which in turn would cause your mortgage payment to increase.

Getting Started

You can either perform the loan modification yourself or go with a professional service provider. Once you decide to get started, the process is as follows. We will review your case over the phone. We will ask questions regarding your subject property, employment, and your current liabilities. This process should take 15 – 20 minutes. Afterwards, we will take your information and have the application reviewed by one of our loan modification attorneys. The attorney will either approve the case for loan modification processing or deny the case based upon the information you gave us. Once the initial approval is granted, than the following must be collected from you:

• Copy of your Drivers License
• Financial Statement
• Signed Loan Modification Agreement
• Multiple Disclosures
• Signed 3rd Party Authorization Forms
• Pay Stubs (for the last 4 pay periods)
• Bank Statements (for the last 4 periods)
• W2’s (for the last 2 years)
• Tax Returns (for the last 2 years)
• Mortgage Statement (most recent)
• Any Legal Notices
• Payment Authorization Form
• Hardship Letter
• Hardship Documents supporting your hardship (birth certificate, death certificate, medical bills, divorce papers, bankruptcy papers, etc.)

Next, the assigned attorney will start working on your case. The attorney will correspond with your lender until a viable solution is attained. The process will take between 30 to 60 days for an answer from the bank. Until then, rest assured, you have a professional company working for you.