How To Get Your Mortgage Loan Modification Request Approved
Millions of Americans who are close to foreclosure are turning to their lenders and putting in a mortgage loan modification request to try to save their homes. With the process getting especially popular in these times of economic turmoil, more and more lenders are giving more leeway to homeowners seeking help. While it's still difficult to have your mortgage loan modification request approved, you have more of a fighting chance than ever before.
Thanks to the Obama Administration's Home Affordable Modification Program, lenders are slowly opening their arms to homeowners going through financial hardship. The program promises a total of $75 billion dollars to lenders across the country if they make active efforts to help rather than harm those that are having difficulty making their mortgage payments. With that, each homeowner who pays all of their lower payments on time entitles a lender to $1,000 dollars at the end of the year for three years. However, while the incentives are fantastic for lenders, it is taking a while for them to adjust -- even with the foreclosure rate up 46% more than it was last year.
You can give your mortgage loan modification request a better chance by filling out the applications very carefully, submitting more than enough documentation pertaining to your financial hardship, and writing a professional and clear hardship letter. But no matter how much you need the loan modification, do not lie on the application forms. The lender will double check and verify your financial status. Even if you are qualified for a loan modification, lying can get you a rejection. Honesty is undoubtedly the policy when it comes to getting a successful loan modification.
Bring in or fax to your lender up to or at least a year's worth of bank statements and paystubs. Some lenders only require a couple of months' worth of documentation, but it never hurts to add to your case. Also bring in your most recent income tax documentation so they can look over that as well. It may seem like they need to look like a lot, but think of it this way: If you were losing money on a deal, you'd like to know it was for a good reason too.
The hardship letter might be the most difficult part of the mortgage loan modification request process for you. You need to write up the circumstances around your financial hardship and your future financial outlook very precisely. You must express the situation behind your current situation fully, but without being too emotional and long-winded. If you have a very special reason behind your current financial hardship, make your case in your letter. The hardship letter could be the deal breaker for your request.
Thanks to the Obama Administration's Home Affordable Modification Program, lenders are slowly opening their arms to homeowners going through financial hardship. The program promises a total of $75 billion dollars to lenders across the country if they make active efforts to help rather than harm those that are having difficulty making their mortgage payments. With that, each homeowner who pays all of their lower payments on time entitles a lender to $1,000 dollars at the end of the year for three years. However, while the incentives are fantastic for lenders, it is taking a while for them to adjust -- even with the foreclosure rate up 46% more than it was last year.
You can give your mortgage loan modification request a better chance by filling out the applications very carefully, submitting more than enough documentation pertaining to your financial hardship, and writing a professional and clear hardship letter. But no matter how much you need the loan modification, do not lie on the application forms. The lender will double check and verify your financial status. Even if you are qualified for a loan modification, lying can get you a rejection. Honesty is undoubtedly the policy when it comes to getting a successful loan modification.
Bring in or fax to your lender up to or at least a year's worth of bank statements and paystubs. Some lenders only require a couple of months' worth of documentation, but it never hurts to add to your case. Also bring in your most recent income tax documentation so they can look over that as well. It may seem like they need to look like a lot, but think of it this way: If you were losing money on a deal, you'd like to know it was for a good reason too.
The hardship letter might be the most difficult part of the mortgage loan modification request process for you. You need to write up the circumstances around your financial hardship and your future financial outlook very precisely. You must express the situation behind your current situation fully, but without being too emotional and long-winded. If you have a very special reason behind your current financial hardship, make your case in your letter. The hardship letter could be the deal breaker for your request.
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