Loan Modification

We hear about the banks offering loan modifications for homeowners.  The reality is that not every bank or mortgage company will participate in these programs.

I have helped families keep their home.  Currently, my office is assisting several homeowners in seeking loan modifications.  More will give up on the modification than will be successful.  People get tired of fighting and decide to move.  Moving does not make the problem go away.

The bank will ask for the same information multiple times.  It is important that you keep every bank statement, pay stub and other important financial information handy.

If your mortgage company request specific paperwork, please do not delay sending it to them.  If you delay in responding, you could have to start over.

Items you should expect to provide:

  • Hardship Letter
  • Monthly Budget with all income and expenses
  • Copies of your Federal Income Tax Returns -2010/2011
  • IRS Form 4506T
  • Last two months of bank statements – Checking and Savings
  • Last two pay stubs

Expect to be asked for updated bank statements and pay stubs frequently.

This list is the minimum that will be requested.  Each company may have their own forms, disclosures and requirements.  Expect to spend hours working on your loan modification request.