Need to get your Home Loan Modified but don't know where to start?
It's tough out there for homeowners. These days with job losses everywhere and wages on the decline it can be tough just to keep up with your largest household expense … Your Mortgage!
But there is hope. You have a few options if you find your mortgage payments are overwhelming you.
If you qualify you can try the Making Homes Affordable program, the government sponsored loan modification program. Or, you might try to re-finance your loan. There are currently several different programs to help homeowners re-finance and take advantage of today's low rates.
However, if you don't qualify for either of these options, don't worry there's another way and one that I've had a lot of success with – Direct Loan Modifications.
Many banks have their own internal loan modification programs. Here is what you need to know to qualify and take advantage of these programs to lower your monthly mortgage rates when other methods haven't worked.
First get your information handy. Here is what they will ask for:
1) Your total monthly income. (all sources)
2) Your total monthly expenses. (credit cards, car, food, phone, etc.)
3) Copies of your last two pay stubs.
4) Copies of your last two month's bank statements.
5) Your most recent W2 or tax return.
6) A hardship letter explaining why you are having trouble making your payment.
Next you need to reach the right department to avoid the run around. Call in and ask to speak with someone in their Loss Mitigation or Loan Retention Department.
When you get them on the phone, they will ask you what your current monthly income and expenses are, and then plug that into their system. If you're income to expense ratio falls within their guidelines then you will most likely qualify for a loan modification. At that point they may ask you to fax them copies of items listed above and assign a "negotiator" to you. This is the person who will work with you to modify your loan payments.
Remember to be polite and follow their instructions. Explain to them why you need them to adjust your loan and don't be afraid to tell them what you CAN afford to pay. This is your opportunity to find a solution that really works. Be sure you don't settle for something that's just a little better, but still not affordable down the road, because you probably won't get another chance to renegotiate this loan. Don't be afraid to tell them "no, I can't reliably afford that". It's important to tell them that you want to stay in your home and meet your obligation to pay for it, but you need their help to do so.