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Do I meet the requirements for a mortgage modification

In many illistrations a homeowner is set up on a stipulated plan prior to implementing a loan modification which allows a lender to monitor the financial condition of a homeowner during the special forbearance period to be sure the homeowner will be able to make payments. There are significant documents required that are reviewed by a lender

Hardship Letter:
To meet the requirements for a loan modification homeowner must have a compelling hardship. The hardship must be known and given as many particulars as possible to sustain your case. A is very subjective and pretty much a requirement in the process of getting a loan modification. There are a few adversities that are considered charitable and do not meet the criteria quitting employment or decreasing the number of hours worked are typically unacceptable. The adversities are known and if there is an additional failure to pay the homeowner can not use the same reason for failure to pay otherwise their previous adversities was really not over and in many instances the homeowner is denied a loan modification.

Financial Statement:
This is used to verify the homeowner ability to pay. This is typically the first form looked over by the lenders negotiator. This form must clearly indicate monthly income and everyday expenditures as well as current assets and liabilities. This is what makes and breaks the entire loan modification review. This form also shows whether or not the homeowner will be able to make payments if the loan is modified. There must be a extra income at the end of the loan modification or else the plan will be denied. The plan must be affordable. If a homeowner is severely over-leveraged with debt there is little chance that a loan modification will cure the delinquency. Monthly everyday expenditures are reviewed to determine what bills are necessary and what are unnecessary. Necessary everyday expenditures are food, utilities and gas and an example of unnecessary are entertainment everyday expenditures, expensive phone plans and unsecured debt. Household everyday expenditures loan payments, utilities, and taxes take up most of the monthly budget. Do not make expenses look unreasonable will be a red flag to get further detail. The negotiators will always look for assets that can be liquidated.

Proof of Pay:
The proof of income is usually a paycheck stub, a P&L Profit and Loss Report if self employed, or checking account account showing paycheck deposits. The proof of income is required to prove the homeowner has steady income. The homeowner must also give frequency of income. The proof of income must correspond with the income shown on the financial account. Resolve any discrepancies

Article Source: http://articleaddict.com

Donald Morris the writer of Foreclosure Help. There is more information about loss mitigation at Stop Foreclosure. Also read our blog about Foreclosure Help

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