modification may sound simple when reading its definition; you only need to
modify your existing mortgage terms to a more agreeable and affordable new
contract. Before any loan modification
begins its process, you need to qualify for the loan modification program –
this can be possible depending on your present financial hardship. Loan modification has helped a lot of
Americans; if you are one of the many homeowners who want to avoid or stop
foreclosure, this may just be your saving grace. If the process goes smoothly – you can get
your existing loan modified fast and get your finances back on track.
though, loan modification is not as simple as that. Most lenders are not too willing to work with
you and restructure your mortgage to make your life easier. Instead, they will make it harder for you –
especially if you have a weak case. That
is why it is important to get yourself the advice of a good loan modification
attorney to help you negotiate your way through the loopholes. Here is a guide to show you how to deal with
your lenders and how to get the best agreement in loan modification.
How it works
Consultation. This is the process where you consult with an
attorney and sell your case to them. A
lot of loan modification companies offer free consultation – they will evaluate
your situation and determine if loan modification is indeed the solution to
your financial problem.
Documentation. If and when the loan modification attorney finds
you suitable for the loan modification program, they will require you to fill
out applications and present financial documents.
are usually included in the requirement list:
Proof of income
A hardship letter requesting for a loan modification and explaining your
At least four (4) months bank statements.
A monthly expense sheet; a breakdown of all your expenses such as food and
2 years W2 forms.
Most recent mortgage statement.
2 years income tax returns.
documents are required by the loan modification attorney to best evaluate and
deal with your situation – how to approach your lender and their initial loan
modification proposal. Also, by
reviewing all documentation, loan modification attorneys can also spot
violations of the TILA (Truth in Lending Act) and RESPA (Real Estate Settlement
Procedures Act), which they can use as leverage during negotiations.
At this point, your loan modification attorney will begin negotiations with
your existing lender on modifying your loans.
A competent loan modification attorney should negotiate aggressively
until your lender makes an offer that will suit your financial capacity. Proposals can be brought back and forth until
both parties are agreeable to the new contract.
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