First, collect your data. You will need to prove your current income and show outgo. Collect information about your monthly gross income (before tax) of your entire household, such as pay stubs, and other supporting data that shows part-time or self-employment work, such as income tax returns. Gather information about your assets, such as stocks, bonds, car, house, or anything that has value. You will need information about checking or savings account. Other necessary required data is information about all mortgages on the house, minimum monthly payments and account balances on all of your credit cards, car loans student loans or any other debt. Draft a letter describing your hardship, i.e. the reasons that caused your loss of job or income to be reduced, your expenses to increase or any, a divorce, illness, etc.
Secondly, call your lender or servicer. Ask to speak to someone about a “Home Loan Modification.” Their telephone number should be on your monthly statement or coupon book. Be honest when you tell them about your situation. They will determine by applying guidelines if you qualify for a loan modification. The goal is to get the lender or servicer to send their loan modification package requesting your information.
Thirdly, organize the package. Make the package easy to track. Number the pages and include a table of contents showing the page number of each document. Lenders or servicers are busy with the many requests for loan modifications that they have on file. Any assistance in organizing your papers will help the decision to be reached faster.
Feel good that you presented a good picture of your new financial condition. A leading factor used in applying for a loan modification is a change in your financial condition that makes paying your current mortgage a hardship. The information showing the change in your financial condition that you provide to your lender when requesting a loan modification is the most important document to prove your case. This is the “make or break” document that for the most part is one of the main documents that the lender bases their decision on. You will have peace of mind if you have clearly presented your current financial condition thoroughly, accurately and with honesty.
