As a loan modification lawyer, many people ask me “how do I apply for a home loan modification?” Well, the short answer is, very carefully and deliberately! Loan modification is not a matter of simply putting in a request with the lender, it has become a long and drawn out process of faxing paperwork and following up constantly.
Step 1 in How Do I Apply for a Home Loan Modification: Lender Requirements
The first step when applying for a home loan modification, is to call the lender and get their guidelines or a list of requirements for loan modification. This information can usually also be found online. Each lender has a list of documents and information they require before you can apply for a home loan modification. Some common documents most lenders require include: paystubs or proof of income, bank statements, tax returns, and a hardship letter. Additionally, most lenders have a set of forms borrowers must fill out.
Step 2 in How Do I Apply for a Home Loan Modification: Make Sure the Lender has a Complete File
With all the requirements (described in step 1), it is common that a few things get lost or the lender doesn’t realize they have it all. It is important to follow up with the negotiator and make sure they have all the documents they need, and the loan modification forms have been filled out. The single most important thing is “proof of income.” The lender must be convinced you have sufficient income to make a mortgage payment in the future.
Step 3 in How Do I Apply for a Home Loan Modification: Follow Up Often
It seems reasonable that once the lender acknowledges that they have a complete loan modification package, it is fine to just wait to hear back. This is not the case. You must call and follow up very often, everyday if possible, to make sure documents have not been lost or the file has not been closed. It’s very common that the lender will lose your file at least once during the process, and usually more than once, so be prepared to re-fax everything.
California Loan Modification Attorneys
Timothy McFarlin and McFarlin LLP attorneys handle all aspects of loan modification for Los Angeles, Orange County and California borrowers. Our reliable loan modification attorneys are available to speak with prospective clients and give you honest advice. With a matter as important as the loan modification on your home, it is a very good idea to consider hiring a qualified loan modification lawyer to represent you and protect your interests. Call us today at (888) 728-0044.