Getting approved for a home loan modification loan may seem like a game of chance to most people. Actually is you have been thinking about a loan modification and really think you need on, you need to get all the paperwork in order so you can make a convincing case to your lender.
For many homeowners, getting a home loan modification seems like a very confusing ordeal and they are not sure how to proceed. However, it is actually a very manageable process. It is true that it is not easy but lenders and banks are not making their decisions about whether or not to modify based on some secret criteria. Simply put, all they care about is how much of a risk you pose.
Some lenders are very selective about who they work with, but this is very understandable. Your lender needs to know that if they continue to finance your home, they will make some money in the process. After all, the bank is a business even if they base this business on lending money.
First you need to know what is needed to modify your loan. Of course you will want to start the process right away, but you need to know if you stand a chance of being approved or not. This will save your time and heartache. If you are not sure, make an appointment with a Home Affordable Modification Program representative who can help you find out. Your consultant may even help you approach the bank and will advocate on your behalf.
Make sure you bring any documents that relate you your income such as pay stubs and bank statements. You will also need to prove your expenses as well, so bring copies of all your monthly bills. You income tax documentation from the year that just ended is also good proof for your lender. Anything you can find that will help prove your financial hardship should be brought to the meeting.
In addition to this paperwork, you lender will want to read a hardship letter that was written by you and sent with your application. The hardship letter is not the only place where you will get a chance to explain the reasons for your modification request, but it is the only place you can show how you intend to make things better. Remember, your lender is looking for proof you are a good risk and will pay back your loan. Make sure you emphasis your desire to honor your obligations. Be clear, concise and formal when you write your letter. Say what you have to say and keep to the point. Lenders deal in facts so don't become overly emotional or try to tell the saddest story, just give them the facts.
Really, it isn't too hard to figure out how lenders work and it really isn't that hard to find out how to modify a loan. Gather everything you need to begin this process and keep it in one easily accessible spot. If your application for a loan modification is rejected, find out why. If you think you have met all the application guidelines, it is possible a mistake has been made and you can probably get this sorted
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