With the overwhelming demand for loan modifications in today’s market, it’s hard for lenders to staff and train employees to keep up with the hundreds of request they get on a daily basis. Attempting a loan modification on your own is a hard task if you are not equipped with the right knowledge as you need to know what your lender requirements are to apply for a loan modification.
Its not uncommon for home owners who attempt to get a loan modification on their own to get a denial, after waiting for many months or to find out that their file got lost and they need to resend everything or after you faxed a document in 10 times they still turn around and tell you they haven’t received it.
For home owners that are knowledgeable enough about mortgage loans that have some time on their hands and that are patience can get through this process on their own with good results. Current loan modification rates range between 2 – 5 % which could be a drastic decrease in your monthly payments and savings of a few hundred dollars per month while saving your home from foreclosure. I am sure many home owners can use the extra cash to pay off some debt, fund a college or retirement account or pay down their mortgage.
For borrowers that have been recently laid off or that are unemployed can still qualify for a loan modification if they can prove to the lender that they have some type of legitimate income or savings. Unemployment and disability are both good sources of income that will qualify for a loan modification program.
If you are going to attempt this on your own you will want to contact your lenders loss mitigation department, not customer service. Loss mitigation can give you the requirements as well as mail you out specific documents that you need to fill out to apply for a loan modification. Be prepared to submit all your financials just as if you were applying for a new loan, such as bank statements, tax returns, pay stubs, and retirement accounts.
If may be best to mail your document in, but if you choose to fax them in, you will want to write you name and loan number on each page so that will reduce the chances of you file getting lost. Lender usually only use one fax number for submission and they get hundreds of submissions per day. Once you submit your file you will want to follow up with them on a regular basis and take very detailed notes of your conversations with them.
