General Guidelines for a Loan Modification
It is imperative at the beginning stages of applying for a Loan Modification that you submit a complete Loan Modification package to the bank. Every bank has different guidelines, but generally request the same type of financial documentation to begin the Loan Modification process. If you are applying for the Obama Plan, which is known as the Home Affordable Modification Program (HAMP) it is essential that you submit the government form with the required financial documentation. A good tip when completing this form is to attach a separate sheet detailing your expenses, as this form does not allow for enough space to breakdown individual expenses. This will allow the bank to better assess your debt to income ratio when they begin to process your file.
Necessary Documents for a Loan Modification
The bank will require you to submit a Hardship Letter detailing the circumstances of your economic situation. It is important that you "briefly" explain to the Lender why you have not been able to pay your mortgage, but more importantly they want to be assured your financial situation will improve in the near future and that you will be able to afford your monthly mortgage payment. These financials are imperative to the package as the bank will use these financials to verify your income. The bank will require you provide two consecutive years worth of taxes, along with a 4506-T form. Make certain your taxes are signed and that your 4506-T is dated and your phone number is filled in. Many Borrowers leave these simple details undone and this can delay the processing of your file for