How to Get a Mortgage Loan Modification?
To many people, mortgage loan modification is like a distant dream. The reason is the number of people who lost homes in foreclosure is much higher than that got mortgage assistance.
What is a mortgage loan modification?
An adjustment to the terms of the existing loan is what we call a modification. It is usually offered in the short run to help the borrower regain financial solvency. This is the only available option when the borrower fails to refinance their existing mortgage. Even after a mortgage loan modification, the original loan remains the same.
You can follow the following tips to be able to achieve a mortgage loan modification:
Fulfill the package.
The loan servicer will want documents like a hardship letter, a budget, paycheck stubs, and a hardship letter. If any document on the list is outdated or missing, the file will be rejected right away.
Make Queries.
You should have a sound understanding of what you are giving to servicers. Servicers often wish to see two paycheck stubs, on the assumption that they make a whole month’s income statement. However, a homeowner, who took payment on monthly or weekly basis, would have to show fewer or more paychecks. Similar confusion about any other documents could also be problematic.
Keep in touch.
As a homeowner you should maintain regular communication with the servicer. Call the servicer at least once a week, to know whether the procedures with the file are complete or not. You can always seek help from a counselor; but servicers prefer to hear from the homeowner regularly.
Try to be persisting.
Nothing compares to that feeling of disappointment when you have to resubmit any documents. However, getting a mortgage loan modification is only for those who are patient.
Label all documents.
There are many in the line to get a mortgage loan modification. Everyday thousands of papers are filed to the MOS. In order to survive this race, homeowners do not have an option available rather than submitting a complete package. Put your loan numbers and names on every piece of document and call the servicer to ensure that they have received all documents. Make sure the documents are pristine.
Disclose your tax return.
Apart from income documents, homeowners have to sign IRS Form 4506-T, too. Doing so will enable the servicer to have an access to your federal tax returns. Without any substantial proof of income it might be harder to get an approval.
Final Words
With proper determination and diligence you can achieve necessary mortgage help. The task at hand may seem rigorous but you can make something out of the time and effort you invest. As a result, you will be able to avoid a foreclosure.