The home loan modification process is complicated and can be very lengthy. Every homeowner has different circumstances, including lenders, credit rating and employment situations. There are, however, basic strategies that can help the majority of homeowners facing this intimidating process. These suggestions may increase the chances of a home loan modification bailout receiving approval.
Provide the lender with a letter to prove legitimate hardship. Homeowners should explain, in their own words, the reasons for the loan delinquency. State the facts that lead up to getting behind in payments and the reasons for not being able to catch them up without a loan modification or other assistance. Be honest and avoid making the letter too lengthy.
Show evidence of past payment history. A record of consistent, timely payments shows that, up until the hardship, you were able to make the payments. It will also show that if given the opportunity with a lower payment, you would be a responsible homeowner and make the lower payments consistently as well.
Evidence of household expenses. Be transparent with this information. Show all regular expenses related to you and everyone in the household. Utility bills, insurance payments and food are examples of household expenses. These expenses will be totaled and added to your other debts, such as credit cards and car payments. After expenses and other debt, there must be enough money left to make your house payment for modification to be considered. A credit check will be run to assure accuracy.
Evaluate the hardship letter. Make sure that the hardship letter expresses the facts of why you are unable to maintain the current mortgage payment. This is not the chance to vent, rant or evoke sympathy. The hardship letter should be an accurate depiction of the circumstances that lead up to the loan delinquency. Some suggest having a hardship letter written by a professional. If a homeowner has hired an agency to help with their home loan bailout modification, they will assist with writing the hardship letter and know exactly what to write.
Check the internet for opportunities to submit home loan modifications online through professional firms. There are many that will provide help and can make the difference between you being accepted into a loan modification bailout program or not. If you are having problems with your home loan getting professional help could be the answer to your problems.
By Robert Charlson