Struggling home owners are scrambling to get modification loans. In order to increase your chances of approval, you need to know how to fill out the loan modification form correctly! This could mean the difference between saving your home and foreclosure!

The first step is to make sure you have everything the lender will require. You will need to contact your lender to make sure you have every loan modification form required by your bank. Here is a list of the most commonly required loan modification forms:

1. Borrower Statement: This is an information sheet that includes your name, address, social security number, and job history and dependent information. Basic facts will be required by all lenders.

2. Financial Statements: This is where you show the lender your current financial situation, including an itemization of your income and expenses. It is important to indicate the reason your current mortgage payment is not affordable and how a new modified (lower) payment would be affordable for you now.

3. Hardship Letter: This is where you will write an essay explaining your situation. You must tell the lender why you are currently or soon will be suffering a financial hardship. (Job loss, death in the family etc.) This is your chance to explain specifically why your current mortgage terms are out of your range and how changing the terms or lowering the payment will be within your new budget. This is SO important, take your time and make sure to stay on topic!

4. Cover Letter: This is your submission cover letter which should state the new terms or payment amount that you are requesting. It’s important to determine what you can afford ahead of time; this shows the lender that you are serious and have done your homework, adjusted your budget and will be able to meet the new obligation.

5. Rental Schedule: If you currently have rental properties, this is the form you will use to indicate your monthly cash flow and whatever equity is involved in the rental properties.

Again, be sure to find out specifically what your lender requires as far as loan modification forms. Each lender will have unique requirements.

The key to being approved for a loan modification is in filling out the forms! You must indicate why you are or will be suffering a financial hardship. You really need to do your homework before giving your lender any financial information regarding your current situation; once you turn in your documents you cannot make any changes! This is crucial! Take the time to prepare your budget and to be able to show what monthly payment and terms you can afford! You must be able to indicate that your budget will allow for this new modified payment as well as leaving you some disposable income left over.

The decision to approve or deny your loan modification request truly is based upon how thorough and prepared your application forms are. Talk to your lender, find out what loan modification form they require and then take the time to fill them out completely and accurately! This truly can be the difference between foreclosure and saving your home! It’s too important to leave to chance; you must do your research!

I have found a link that can assist you with your loan modification needs.

By: wesvista

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Your best tool to negotiate with your mortgage company is the discovery of a Truth in Lending Act (TILA) violation, which in some cases may give you the right to rescind the loan. State and Federal laws require mortgage companies to follow specific guidelines when originating home loans and as a result many mortgage loans have TILA and/or RESPA violations which can be used as bargaining tools when negotiating a loan modification with the mortgage company.

Many of the home loans originated by brokers and lenders over the last few years have unexplainable fees and charges or were manipulated by overstating the borrowers’ income or inflating the property value to allow the lender to illegally profit from the sale of mortgages to investors in the secondary market. Subprime mortgages with hidden interest rate adjustments and pre-payment penalties or Option ARM loans with minimum payment options allowed borrowers to differ interest to a point in future when the loan recasts and forces the borrower into hardship by paying a much higher mortgage payment. In most cases refinancing is not an option due to declining property values or high debt to income ratios. Only a Forensic Loan Audit can discover and document these violations, which may be used against the lender when negotiating a loan modification.

Another common violation occurs when the creditor fails to properly provide a notice of the borrower’s right to cancel. The right of rescission may be extended for up to three years in certain circumstances. When the right is extended for three years you can rescind the loan at any time before the three years are up meaning that the loan is treated as if it never existed. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees.

The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending. During a Forensic Mortgage Loan Audit we often discover TILA violations, which can be used as leverage when negotiating a loan modification.

This is not intended to be construed as legal advice.

 



By: Loan Audit

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If you are searching the internet for loan modification programs, you need to read this article. It will break down what you can expect from a loan modification and the best way to get one.

There are so many different companies out there today, it’s hard to choose the right one. Do you go with an attorney? No attorney? Money back guarantee? Or try to do it yourself. I always say, go with the option that will get you the best possible result. You only get one shot at a loan modification and you want it to be as good as it can be.

If you choose to do it yourself, which can be done, you will save the money you have to pay a loan modification company, but you will probably lose out over time. This is because professional companies know exactly how low your lender can go and how to present your financials to get the best possible results. If your lender offers you an interest rate of 5% fixed for 5 years, you might think “Wow, that’s great. I’ll take it!”, while an experienced company might know that your lender will go as low as 2% and try to get your terms extended to 40 years as well. The difference of just one percent on your interest rate will mean thousands of dollars in savings over the life of your loan.

Did you know this? If you are threatened by foreclosure, a loan modification program can actually freeze your mortgage for 3 months.  This means your lender cannot foreclose on you during this time.  This will allow the company enough time to complete the loan modification and save your home.  It’s not just any program though, it’s the “Obama Mortgage Plan”. 

This plan must be hard for homeowners to qualify for on their own!  With literally millions of homeowners in need of mortgage help, less than 400.000 homeowners have actually received loan modifications through this program.  If you do get accepted, you can expect an interest rate as low as 2% and your mortgage payment cannot exceed 31% of your net monthly income.  That equals one low monthly payment for you!

If you would like some more information about a company that can see if you qualify for the Obama Mortgage Plan and other loan modification programs, just visit the links below. 

 



By: Bob Mason

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