Susan V. Gregory asked:




You can increase your chance of getting a mortgage loan modification from your lender. The key is to have a good general understanding of just what the procedure is and how to apply correctly. Most homeowners have never even spoken to their lender let alone had to try to negotiate new loan terms with them. No wonder most borrowers are hesitant to contact their bank. But once you understand the process and know what your bank needs from you, the whole procedure will seem a lot less intimidating.

Here is some basic information about what is involved and how to get started:

Mortgage Loan Modification Steps:

Contact your lender and ask for consideration for HAMP-Home Affordable Modification Plan Prepare your application correctly- including your financial statement and hardship letter Send a complete package back to your lender-including proof of your income

Mortgage Loan Modification Procedure:

Your request for a loan modification must be acknowledged within 10 days by your lender You will be sent an application package in the mail Upon receipt of your package, it will be reviewed for accuracy and completeness A Notice of Missing Documents will be sent to you if you left anything out Upon receipt of a COMPLETE application, you will be notified within 30 days if you qualify or not

Mortgage Loan Modification Terms:

If you qualify, your payment will be reduced to an affordable amount by lowering your interest rate, increasing your loan term or deferring or forgiving principal You will be put on a 3 month trial modification, upon completion of timely payments, your modification will become permanent automatically If you miss payments or do not qualify, you will be excluded from the loan workout program and offered another option like HAFA-Home Affordable Foreclosure Alternative. This is a streamlined short sale process.

As you can see, the key to getting your loan modified quickly is to prepare your application correctly the first time. Most important is to be certain that your financial statement fits the approval formula-this means your income, debts, debt ratio, etc all are within the guidelines for acceptance. If you are not certain how to prepare your financial statement and what adjustments to make to your budget, then you may want to use a software program designed just to help homeowners qualify. You can avoid mistakes and save a lot of time.

You get one chance to get a loan modification so be certain you take the time to submit your application correctly. When done right, you could get your answer in just 30 days and be one the road to secure home ownership once again.

Minnie

Michael A. Goldstein asked:




If you are behind on your mortgage payments or are struggling to stay current on your loan payments, you may have considered refinancing your loan. However, if you have been turned down for a refinancing, and your home is worth less then you owe on it, you may be able to modify your loan. Below are several tips to successfully modify your existing loan, even if you do not have good credit.

Prepare a detailed document listing all of your income, assets and debts both secured and unsecured. More specifically, you should list out any income from wages, investments, social security, etc. You should also list any assets you have, such as investments, stocks, bonds, money in any checking or savings account, 401K, and fair market value of any additional real estate. You should list out all secured debts, such as 1st and 2nd mortgages, car loans, and any credit cards that use property as collateral, such as jewelry. Finally, you should list your home expenses, such as utilities, credit card bills, educational expenses and any other monthly expense that you incur. Draft a short hardship letter. Every loan modification has a story behind it. You need to tell the most compelling story as to why you can not stay current with your mortgage, or why you need to modify the loan to enable you to conduct some other life necessity. Prepare all of your financial documents such as: two years of tax returns, six months of bank statements, three months of pay stubs, Proof of home insurance. Form your negotiation strategy You want the bank to believe it is in their interest to modify the loan. As such, you want to remind the bank that you do want to remain in the home, but should no modification be entered into, you may have to file bankruptcy and force the lender to foreclose on your home, thereby incurring all of the legal fees and financial losses of selling your home in a depressed market. Always ask for more then you expect or want (It never hurts to ask) You want to leave room to negotiate to your eventual goal Typically start at 70% of your goal. When forming your offer, make sure you have thrown in a few items, you do not need, but can use a bargaining chips by taking them off the table. When the bank makes their first offer, you want to counter without emotion. For example you can say “let me see if that number will work for me, I need to run my numbers and get back to you with in 48 hours. I will need to speak to my attorney or broker first.” As discussed earlier, when negotiating with a bank, you may want to imply that should the loan modification or short sale not work out at the walk away price, the bank will end up taking the property and incur all the foreclosure sale fees involved. This is especially important in a depressed market, where it is unlikely the bank will recoup their return on investment. Banks do not want to owe properties in this market.


If after talking with your lender you have not received the results that you need, please feel free to contact our law office.

Willie

Walter Sigmore asked:


ne of the million who’s missed a few payments on a mortgage and want to avoid your loan going into default? The new federal mortgage loan modification plan can help those out who are in desperate need of a little assistance and get some necessary modifications on their mortgage loan so that it’s affordable again.

To have the ability to qualify for this modification plan you will need to have a first mortgage that is worth less than $729,500 that was completed and signed before the beginning of 2009.

When you are applying for a loan modification most people forget that they must live in the home at the time of application to have the chance of approval. If you do not live in the home the lenders will not see the point in giving you a loan modification as you are not currently residing there. Most people don’t realize this until they are applying for the loan modification and get turned down.

Alongside these two things you will also have to take the time to write out a hardship letter. They advise that you handwrite this piece as it’s more personalized and has a legal signature on the bottom. With this document you are explaining the entire situation as to why you are unable to make the necessary payments and how you plan on getting back on track.

This document could either make or break you when it comes to getting approved and if you don’t take the time to answer all the personal questions the lender may not consider you for a loan modification.

You don’t want to find yourself struggling drastically financially when there are many companies out there willing to help you. Your mortgage broker may have the opportunity for you to get a loan modification yet you’ve never inquired about it. All you need to do is ask your mortgage broker if they are offering such a thing and they may be able to assist you.

With the new federal mortgage modification plan you could find yourself getting out of the red zone in no time. When you are approved for this modification plan you can finally get your life back on track and finally have yourself stabilized financially. A mortgage loan modification can be quite useful for anyone needing to get out of a financial struggle.

Nicholas