Applying for a home loan modification can be daunting and incredibly frustrating, so much that it makes you want to give up. However, you may want to reconsider and finish that application. Recently mortgage companies are getting their acts together and properly processing homeowner’s applications has become a higher priority.
Let’s start off with some motivational numbers to see just how much one can benefit from a home loan modification.
Hypothetically, if your home loan is $150,000 at 7% interest—a home loan modification could be reduced to a 2% interest rate for 3 years, making a monthly payment of $550.00. Keep in mind that escrow and impound fees still need to be added and these numbers are for example purposes only. But as you can see from this example there are strong benefits.
Submitting an application can be a hassle, especially when you don’t know what is needed. Wouldn’t it just be easier if there was a check list somewhere telling you, well you are in luck; below we have provided one for you.
- Fill out an application form
- Submit last two tax returns
- Gather all your wage records (paystubs or a profit and loss statement if you own a company)
- Submit bank records from the last 6 months (now if you are like most Americans and didn’t keep a copy, you can obtain this final step by going online or into your banks branch and ask for it to be printed. It’s as easy as that)
- Before submitting your application, it is smart to number the pages and add your account number to each page before sending it to your mortgage company
- Finally, make an extra copy for yourself. Accidents happen and papers do get lost once in a while. You will save yourself a lot of stress by following this last step.
Remember that you are not the only one in this position, so it would be smart to call your mortgage company as a checkup. Thousands of other don’t let your paper work get lost. It is advised to call at least once a week until you have confirmation that all your information has been received. It is common to feel nervous about the application process, The Mortgage Law Group urges you to seek help before you find yourself in an underwater home that cannot be saved. Good luck!
To qualify for a loan modification, however, you need to prove that you have sufficient income to make the reduced payments on an ongoing basis. The process can also take a long time to complete and you may wind up falling even further behind on your mortgage payments. So before you decide on, it's certainly a good idea to seek advice from a financial professional to see if loan modification is right for you.
ReplyDeleteRegards,
David from gethomeloans.co.za