A guide to loan modification success can be a good motivational tool to keep from losing faith when waiting for your lender. Being told that your application for a loan modification has been approved is a great feeling of success and relief. After months of waiting and wondering, a loan modification success can be a great victory for homeowners during these tough economic times.
Guide to Loan Modification Success 1: Fill Out the Application Completely
Lenders have disclosed that a large percentage of loan modification denials stem from improperly filled out forms and incomplete documents. Homeowners should read every word of the lender guidelines, and make sure their loan modification application is completed properly to avoid an unnecessary denial.
Guide to Loan Modification Success 2: Write a Good Hardship Letter
The hardship letter fills in the blanks for the lender. It is the borrowers chance to explain, in his or her own words, the reason for the modification and how the modification will help the borrower get back on track. The lender wants to see that the borrower won’t default again if the modification is granted because they’ve solved the financial problems that caused payments to become delinquent. The hardship letter should be short (only a few paragraphs at most), and should contain only facts related directly to the hardship and the solution, nothing more. It should concise and easy to read, not long and overly wordy.
Guide to Loan Modification Success 3: Keep Detailed Records
For a loan modification, the homeowner will have to submit various financial documents, which may include past tax returns,paystubs, recent bills, bank statements, etc. Having this kind of documentation on hand will ensure the borrower can swiftly submit their application for a loan modification, and can easily resubmit it if the lender loses it the first time (very common).
Guide to Loan Modification Success 4: Stay Positive and Be Patient
Keep in mind, a loan modification is never guaranteed. Homeowners should never count on the outcome of a loan modification and should always explore other options and living arrangements. Possible alternatives to a loan modification include short sale, a deed in lieu of foreclosure, or mortgage litigation. A qualified loan modification and real estate attorney can explain these options and help you through the process.
California Loan Modification Attorneys
McFarlin LLP attorneys handle all aspects of loan modification for borrowers in San Francisco, Oakland, San Jose and throughout California. Our attorneys are available to provide you with honest reliable advice at one of our Irvine office or over the phone. With a matter as important as loan modification and foreclosure, it is a very good idea to consider hiring qualified loan modification lawyers to represent you and protect your interests. Call us today at (888) 728-0044.