11.10.09
The Way To Do Your Own Loan Modification
These are the few things needed for a foreclosure:
- Mortgage Statement
- Bank Statements
- Pay stubs for 1 month
- Homeowners Insurance
- Last 2 years W-2’s
- Hardship Letter
- Plan of action
Step1 Paperwork is very necessary in undergoing a process of loan modification. The mortgage company has to be contacted first or the Mortgage Modification Department or the Loss Mitigation Department.
These departments are the one that’s going to assist you in the whole procedure. One has to inform them on phone to the loss mitigation officer that he is unable to pay the dues or cannot afford to make the payments. I
nform him that u want to have a reduction in the rate of interest or extension of the term of loan, reduction of principal balance. You can also ask for a reduction if the value of the mortgage amount at a rate lower than the current market rate. They will inform you to send a package of documents that you need to study carefully.
Step2 On receiving the package one has to make sure that he include all necessary documents. Keep in mind to attach the Hardship letter also along with the documents. One has to take care while writing down this letter.
In a plain paper one must wrote the reasons for his financial difficulties and why you are unable to pay the payment for mortgage in time. Reasons can be anything from a job loss, medical reasons etc. A broken marriage can also be a reason for a foreclosure.
Step3 Al the information must be send back to the bank. The bank will in turn ask a loss mitigation staff to look into the case. This is time consuming and in the meanwhile you should also try to clear your payment. But to make a payment you should be sure for 100% that your house is not going for a foreclosure. The main reason behind this is that during the stressful situation of financial crisis one should not make payments