Will a Mortgage Modification Work for Me?

To hear the term, “mortgage modification” incites both hope and fear. Why because it is a way to save your home, but very few achieve it. Even housing counselors admit that there’s seemingly something mysterious that dictates who actually qualify for a mortgage modification but there ARE ways homeowners can better their chances.

Tips for getting a mortgage loan modification:

1) First, homeowners need to gather together and submit paycheck stubs, a hardship letter, a budget and any other documents that the loan servicer is going to want. You don’t want to miss ANYTHING because if you do, your loan file gets tossed aside to deal with a package that IS complete.

2) Next, you want to ask questions. Be certain you know exactly what to provide to servicers. Servicers often ask for two paycheck stubs assuming that two paychecks represent one month’s income. But a homeowner who is paid weekly, bimonthly or monthly may have to submit more or fewer paycheck documents. See the misunderstanding here? Similar misunderstandings on other documents can cause big problems.

3) Additionally, you should keep contact/communication current. Homeowners should call the servicer at least weekly to check on their request. Ask if your package is complete and review the documents. Explain any and all special or changed circumstances. Counselors do help but lenders also want to hear from the homeowner often.

4) Lastly, be persistent. Of course, you’ll feel frustrated and annoyed when asked to resubmit documents. However, if you simply realize you’re at their beck and call and hang in there, you just may be rewarded in the end!

Some more tips:

Through all the above tips, remember to be FLEXIBLE…loan modifications come in many varieties. Consider taking what you can get.

Also, release your tax return. Homeowners are required to not only submit income documents but also sign IRS Form 4506-T, which allows the servicer to access the homeowner’s federal tax returns. People often don’t succeed because their unable to provide good proof of income.

Contact Advantage Legal Group to get started on mortgage modification in Seattle.