How Do I Get A Loan Modification?

Homeowners who are worried about missing mortgage payments and eventually going into foreclosure have an alternative that can make their lives immeasurably less stressful. Home loan modifications are being implemented to try to stabilize the housing market, and keep as many people as possible out of foreclosure.

Getting a loan modification for your distressed mortgage situation is relatively straight forward. You can attempt to manage the process on your own. Or, if you prefer to hand over the details to a third party, such as a loan modification attorney, that’s an option that has its advantages as well. They include:

• Expert insight
• The stature and influence that a lawyer can bring to the negotiating table
• Protection of your legal rights
• Potential monetary returns for illegal actions

Whichever route you decide to take, the next step is to call your lender to tell them you are considering a loan modification on your mortgage. When you consult with your lender they will request that you bring several financial documents with you to verify important information in order to see if you qualify for a loan modification. Required documents may include:

• Your monthly mortgage statement
• The most recent homeowners’ or condominium association fees statement
• Paperwork for any additional mortgages on the property, if applicable
• Proof of income, a W2 form, recent pay stub, or if self-employed, a profit-and-loss statement
• Property tax paperwork and most recent income tax return
• Paperwork for any other debts, include credit card statements, student loans, or other debts

There may be additional documents involved in the process, including a written statement from you regarding the financial problems that you are experiencing that can potentially lead you to foreclosure. Your lender can give you a complete list of what they will expect from you and your real estate attorney will help you fufil the list.