Loan Modification Process

The first step to getting your home loan modification approved by the mortgage servicer is to make contact with them to obtain the correct documents. There is no need to be afraid of your mortgage company as they are use to speaking with homeowners that are in trouble with their mortgages. They are like your doctor there is not a story that they have not heard at this point. Request that the mortgage company representative send you a loan modification packet. This packet will include a Request for Mortgage Assistance form (RMA), IRS 4506t, and a verification of income. Many mortgage services have this information included on their websites as well.

It is very important to be thorough when filling out this information as your lender will use this information to approve or deny your loan modification request. The mortgage company is trying to determine if the loan modification is successful whether the homeowner will be able to afford the payment on an on- going monthly basis. Keep in mind that the mortgage servicer does not want to take your home as they are in the interest collection business not the real estate business. They will only take back your home when there are no other alternatives that will satisfy the requirements of the government programs and the investors that own your loan.

Your mortgage company is there to assist you, but keep in mind that they are not going to go out of their way in doing so. You must need to fall within their guidelines for an approval to take place. Educate yourself on the process by reading material from books, websites, and calling companies that specialize in loan modification services. Be aware of loan modification service companies for hire in the past there have been many scam artists that have preyed on the helpless homeowner. Most states have been going after these individuals over the last couple of years, but still be cautious. If they guarantee their results of success, or ask for money upfront of obtaining a loan modification approval run as no one can guarantee whether a mortgage servicer is going to approve a loan modification this includes attorney’s as well that also offer these services.

Collect your personal information such as: current paycheck stubs, Federal tax returns for two years, two months bank statements with all of the pages, a written explanation of your hardship, and send these along with the packet information to the mortgage servicer. The whole process should take from 30-180 days and in some cases longer depending on your mortgage servicer. But, most of all be patient this process is in your favor.