July 13, 2024

Jocuri

Mad about real estate

Loan Modification Form – How to Get Approved

Struggling home owners are scrambling to get modification loans. In order to increase your chances of approval, you need to know how to fill out the loan modification form correctly! This could mean the difference between saving your home and foreclosure!The first step is to make sure you have everything the lender will require. You will need to contact your lender to make sure you have every loan modification form required by your bank. Here is a list of the most commonly required loan modification forms:1. Borrower Statement: This is an information sheet that includes your name, address, social security number, and job history and dependent information. Basic facts will be required by all lenders.2. Financial Statements: This is where you show the lender your current financial situation, including an itemization of your income and expenses. It is important to indicate the reason your current mortgage payment is not affordable and how a new modified (lower) payment would be affordable for you now.3. Hardship Letter: This is where you will write an essay explaining your situation. You must tell the lender why you are currently or soon will be suffering a financial hardship. (Job loss, death in the family etc.) This is your chance to explain specifically why your current mortgage terms are out of your range and how changing the terms or lowering the payment will be within your new budget. This is SO important, take your time and make sure to stay on topic!4. Cover Letter: This is your submission cover letter which should state the new terms or payment amount that you are requesting. It’s important to determine what you can afford ahead of time; this shows the lender that you are serious and have done your homework, adjusted your budget and will be able to meet the new obligation.5. Rental Schedule: If you currently have rental properties, this is the form you will use to indicate your monthly cash flow and whatever equity is involved in the rental properties.Again, be sure to find out specifically what your lender requires as far as loan modification forms. Each lender will have unique requirements.The key to being approved for a loan modification is in filling out the forms! You must indicate why you are or will be suffering a financial hardship. You really need to do your homework before giving your lender any financial information regarding your current situation; once you turn in your documents you cannot make any changes! This is crucial! Take the time to prepare your budget and to be able to show what monthly payment and terms you can afford! You must be able to indicate that your budget will allow for this new modified payment as well as leaving you some disposable income left over.The decision to approve or deny your loan modification request truly is based upon how thorough and prepared your application forms are. Talk to your lender, find out what loan modification form they require and then take the time to fill them out completely and accurately! This truly can be the difference between foreclosure and saving your home! It’s too important to leave to chance; you must do your research!I have found a link that can assist you with your loan modification needs.