If you’ve been falling behind on your mortgage payments, it may be wise to apply for a modification – it may dramatically improve your financial situation. If you’ve been considering applying for a mortgage modification, but weren’t sure where to begin, this article will walk you through the basic steps.

First, you should check to see if you meet the basic requirements for a loan modification. If you find that you do, you should gather the financial information that your loan officer will need to determine eligibility. To help your loan officer to process your application quickly and easily, you should bring proof of your gross monthly income, including your salary and other income sources. You’ll also need your most recent income tax paperwork, and information about any assets that you own, such as property, vehicles, etc.

You’ll also need to bring information about any current debts you have. Your loan officer will need a clear picture of any money you owe, such as student loans, medical bills, credit card information, personal loans, and other debts. While it can be humbling to gather all this information and share it with others, it’s also an important step in the mortgage modification process. Without a clear picture of your day to day financial situation, your lender will be unable to help you, so take the time to gather all the information you can to document your debt load.

Last, you’ll need a letter to your mortgage company explaining your financial hardship situation. In this letter, describe clearly what caused your income to decrease or your expenses to increase, making your mortage unaffordable. This letter can cover changes in your life situation like losing a job, going back to school, having a child, or serious medical issues. If your hours have been cut at work or you’ve recently had to take on additional responsibliites (a divorce, for example), you should also cover this in the letter. This is your chance to “plead your case” and explain to the lender exactly what’s been going on to make your situation so difficult.

Once you have all of this information in one place, you can begin the application process for a mortgage modification.

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Filed under: How To Apply For A Mortgage Modification

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