Get a Mortgage Loan Modification in 5 Easy Steps

I am going to share with you the exact steps we take to not only start the process but finish it resulting in a lower payment and better loan terms for our clients and ourselves. Although every Mortgage Loan Modification was not created equal this what they all want to see.

  1. Make Contact with the Loan Modification or Loss Mitigation Department. Track every move you make with detailed notes on who you talked to, when, and all correspondence whether it be fax, email, or verbal. Ask them what the procedure is to apply for a loan modification. Give them your information and ask them if there has been any foreclosure process started (if you are behind more than 2 payments). No matter what step you are in with this process call them back every week to check status and be sure they know you are processing a mortgage loan modification so the foreclosure process can be halted.
  2. Gather all your financial documents that will support your income and your expenses. The modification of your mortgage loan will hinge on providing everything to them for their review. This is the basic list but give them everything they request:
    1. Bank statements for last 3 months
    2. Last 60 days paystubs for all income earners – remember to keep and send paystubs at the end of each month
    3. Rental agreements
    4. Copies of any social security award letters
    5. Evidence of retirement income
    6. Proof of child support
    7. W-2 or profit and loss
    8. Proof of any other income received
    9. Copies of your mortgage statements for them and any other mortgages you may have on rental property.
    10. Last year's tax return all pages (signed 1040)
    11. Copy of a utility bill – this helps prove you occupy the property

    Detailed steps on how to prepare each of these can be found in our book along with the exact steps we use to get loan modifications approved you can buy and download the book here: Loan Modification eBook

  3. Thoroughly review all the mortgage loan modification forms provided by your lender and complete. You will need to provide them everything they request or your loan modification package will get declined. If you do not understand what they are requesting, call them to get clarification. Make a copy of your entire package once it is ready to be send or faxed so you have backup because they will likely not receive or lose something.
  4. Send the package and followup. You will want to follow up on the package 2 days after it is faxed and 5 days after if you sent it by mail. If sending by mail, send it certified mail. Track every call you make by time and date and who you talked to in what department. Call them once a week and ask what the status of the package is, if they need anything else, and what the status is of any pending foreclosure proceedings, in any.
  5. When you receive and answer on your mortgage loan modification program. You will want them to provide the loan modification program they are offering in writing. If it does not provide for a lower rate or lower payment ask them how they came up with the loan modification proposal. You will want to request a lower rate and payment from what they offer. I would also ask what you would need to provide to request a principal reduction if your home is upside down. If you are declined, get the exact details as to why. If it has to do with calculations find how they made the calculations and double check their work.

In a nutshell this is what we do for our clients and have done for ourselves. Every situation is different and every borrower has different qualifications, but if you cannot make your payments you are having a hardship. In this case you should always apply for a mortgage loan modification.

Our eBook provides you with our 3 years of experience negotiating loan modifications and combined 50 years experience in real estate and real estate finance.

If you want an easy step by step guide to get your loan modification done quick buy and download it now by clicking here: Loan Modification eBook

P.S. Look at it this way, if I told you that if you gave me $39.95 and with that I could save you $5,000 next year in return, would you do it? Spending $39.95 on our book will give you all the knowledge you need to save that kind of money.

Good luck to you, and Stay Persistent!