Credit Dusters

This week we are discussing a painful, but important situation that a lot of American consumers are facing. It is so scary to think that you might lose your home, but we want you to know that there is hope. We want to be a resource to those folks because we have been there and understand how scary it can be.

There is a lot of misunderstanding surrounding the Loan Modification process. We are here to shed the light on these myths and provide the resources necessary to get you a lower payment. Here are a few important tips that will help you complete your objective.

1. Be Kind. As the old adage goes, “One gets farther with honey than with vinegar.” You mortgage lender is not like the collection agents that hound you day and night. They are civil and most really want to help. The best way to get what you want is to make the person on the other end of the phone your best friend.

2. Understand The Process. If you go in with intelligence and explain to the Loan Modification Dept. your situation, the chances are actually pretty good you will walk away with a lower payment. The good news is that they do not want your house, they just want your monthly payment.

3. Have your paperwork ready. This will be the most impressive thing you can do. If you are prepared they will be much more likely to work with you.

 Here is what they are going to require:

           1. Hardship letter - This is an important piece to the puzzle. Type it up so it looks professional. The letter needs to include the reason for your request (i.e. job loss, sickness, divorce), why you feel you  should qualify for  a lower rate, and that you are willing to do what it takes to maintain your home. Budget - Many times they will go over the budget during the initial call so have this ready to read to them. Also, fax it with the other information.

           2. Pay Stub - They are going to require proof of income.

           3. Tax Returns - You are going to need to prove your income for the last two years.

           4. Bank Statement - Usually they need at least the last two bank statements.

4. Ask Questions. Be proactive and ask for the next step. They receive a lot of request so you will need to give them time to do their job, but you don’t want to get lost in the avalanche of paperwork.

5. Keep paying your mortgage payment. Do not expect to be able to skip a payment. The Loan Modification approval is based on you continuing to pay your payment on time.