Getting your mortgage modified can be one of the most confusing and difficult things to do as a homeowner. Don’t let yourself be in the dark over your loan modification approval chances with your lender. Follow this modify mortgage tutorial and shed some light on the process of modifying your mortgage.
Find out your lender’s requirements for homeowners to qualify for mortgage modification. These are easily obtainable by calling your lender or searching on-line. You can even find experiences of other people who have applied for loan modification with your lender to see if they abide strictly to their requirements or not.
Know what lenders look at when considering you for mortgage modification. There is no set modify mortgage tutorial on this as every lender is different, but most lenders look at the following when considering your application: Credit, property value, payment history, whether you have been bankrupt or not, current employment or employment history, your future financial prospects, the property’s current value as opposed to the initial value, your debt to income ratio.
Fill out your application honestly. Most lenders will write off your application if they find even an inkling of false information. No matter how bad your situation is, your lender has probably heard worse. And if your situation isn’t that bad and you are trying to make it seem worse than it really is, all you’re going to do is lower your chances even more. Lenders are looking to aid homeowners who are going through financial hardship, but in some cases they do approve homeowners that are on the verge of financial hardship and not actually in it. No matter your reasons for requesting a loan modification, lying is only going to hurt you.
Write a hardship letter. Some homeowners forget about this entirely or write it off as an unnecessary formality, but there is no doubt that the hardship letter you send to your lender is extremely important to your chances of being approved. Your letter should be concise and tell just the right amount of information, while trying to convince your lender that you need the loan modification. Include your circumstances, the interest rate that you would be able to work with, and your willingness to work with your lender to avoid foreclosure.
To make the process go faster, consider sending in both the application and the hardship letter a the same time. Sending them in at different times can stall the process and cost you precious days to avoid your foreclosure. If you are looking at the application on-line, consider printing it and sending it along with your letter as opposed to sending it online.
This modify mortgage tutorial covers all the things you need to know to get started working towards your loan modification. It’s not as confusing as it seems. Just get your facts and paperwork straight and you will have great chances of a successful loan modification agreement.