Today, millions of people are trying to keep their home from going into foreclosure. To keep this from happening, many mortgage lenders offer a home loan modification. Obviously, the last thing lenders want is for homeowners to lose their property, a horrible situation for the homeowner but the lender too in that both parties lose something of significant value. With the current economy, most lenders are much more willing to offer a home loan modification.
Although this is a viable solution, the process requires time and work. As the homeowner, you would need to gather all relative documentation, which would be the same information used for the initial purchase. Although every lending institution has slightly different requirements, most would need the following documentation for a home loan modification.
• Mortgage Statement – Each month, the mortgage lender would have sent you a statement, which confirms the delinquency of the loan, as well as loan number. In some instances, the monthly statement is used so anyone that signed on the original contract could be verified.
• Second Mortgage Statement – If you have a second mortgage on the property, this lending institution would also provide you with a monthly statement verifying the same information as for the first home mortgage.
• Authorization to Release Information – Every lender is required to have this completed form, which states a lender handling the home modification loan has your authorization to work on your behalf.
• Hardship Letter – Lenders also require a signed hardship letter, which provides the reason that a modification loan is needed. Lenders favor a more detailed letter regardless of the situation, family death, lost employment, serious illness, and so on.
• W2s – You will need to provide the prior two years W2s so they can determine your current income and identify any change in financial situation. If you were self employed, instead of W2s, you would need tax returns for the last two years)
• Proof of Income – For any signers on the mortgage loan, the lender of a home modification loan would need proof of income. Typically, is includes paycheck stubs for the prior two months, which would reveal any increase or decrease in income while reassuring the lender that you could afford the loan. If your income went down, the lender would see that you could not satisfy the current loan agreement, which would support the hardship letter provided.
• Bank Statements – For your personal bank accounts, the lender would need the last three months, for all accounts. Information on the statements provides the lender with a detailed story of changes in deposits, daily balances, and liquid assets. A decrease of any of these again supports the need for the home modification loan. If you were self employed, you would also need to provide three months of business statements.
The fact is that a home modification loan is not a fun experience but starting by choosing a reputable company is the first step in reducing your daily stress level. The lender should be chosen based on a number of factors, one that they guarantee return of cost in that loans of this type have associated costs. Additionally, the lending institution should be reputable, especially with so many people being duped out of time and money by pretending to be credible.
The lender you choose should provide information and guidance and back each action taken toward finalizing the loan. Rather than feeling overwhelmed by the prospect of losing your home to foreclosure, know there are great mortgage lenders that can help bring your mortgage current with a home modification loan.
Author Resource:
Thomas Stevenson, Freelance Writer. We are committed to providing free helpful information about the real estate market. If your want to know more about the national homebuyers in the Uk visit http://www.sellhousefast.co.uk/ . Thomas Stevenson is a real estate investor based in Florida. He is a former estate agent and writes widely about issues related to real estate and finance. His latest project revolves around establishing a network of national homebuyers in the UK to help put sellers in touch with buyers online.
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