Mortgage Modification Tips - Home Loan Modifications Process
Are you in the process of Loan Modification or thinking of applying for one
? Home Loan modifications can be both time consuming and daunting. Here are some things to keep in mind if you are in the process or are considering a home loan modification.
Loan Modifications Take Time
Generally, it can take between 30 to 90 days to complete the process. Don't lose heart, but be aware that it can take months before you hear back from your banker, credit union, or other lender. You should ask when your paperwork is likely to be completed and mark that date on your calendar. This is useful as a reminder if you start to panic when you have not heard from your lender as well as knowing when you should call to check on your application. Despite the time it takes, you will not be charged late fees; however, this will not stop the lender from calling or sending you delinquent notices.
Don't Be Alarmed
The government has mandated that lenders waive late fees and penalties when mortgagors are going through the process. Just remind the lender representatives, when they get in touch with you, that you do not and will not owe late fees. It's a good idea to log any correspondence and phone calls between you and your lender. This is a safety precaution, and you don't need to transcribe the conversations, but do write down the general idea and tone. It is also a good idea to check out other possibilities if the loan modification application does not get accepted. These months can be key to getting your house ready to sale if it becomes necessary.
Does everyone qualify for loan modification?
You need to prove that you can make the modified payments both now and in the future. To do that, you will need to provide proof of employment and/or a current financial statement.
Next, you will need to show financial hardship for example, a lower income or more expenses than in the past. Each homeowner's financial situation will be different, but the loss of a spouse, loss of a job, divorce, illness, or military service is usually qualification for a load modification.
Getting Started is Simple
Take the time to get the documents you need, a financial statement, proof of hardship, lender statements, bank statements, etc. Contact your bank or loan officer to start the process. If you are intimidated by paperwork or lenders, you can pay someone to represent you in this matter. Be sure you keep copies of all statements and make certain to read everything before signing.
The Loan Modification Process can work for you, but make sure you do your homework and remember that not everyone will qualify. Do your part to keep track of the process, be informed, and make sure you explore all your options.
by: Jason Witts
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