Facts And Information On Loan Modification Process

It is common to those who have applied for a loan modification not to hear anything regarding about the ongoing assessment or loan modification process for several weeks. If this happening to you and with the addition of collection agents continually harassing you and notices for late payments are piling up, it is time for you to know how things work and use it to your advantage.

The loan modification process usually takes around thirty to ninety days to complete. The waiting period is usually dictated by the time needed by you and your attorney to finish the process or by your lender. However, the thirty to ninety day period is not a guarantee. The more complications there are to your application, the longer the process will take. The concessions that are needed from the investor are also a factor in your loan modification process. If you happen to have a lot of issues on collateral, there is a chance that your loan modification process will take more than the maximum ninety days.

Getting the services of a good attorney will often shorten the amount of time needed for your loan modification process to complete. The attorney should be able to process the required paperwork efficiently and present your application in the way the lender would agree upon. The lawyer should also have some previous dealings with cases like these to give assurance of its success. However, before you contact your lender, make sure that you know the exact state of finances. The factors to consider include your monthly income, your monthly bills and ways you can cut your costs. You can ask a counseling service to help in putting a financial analysis together.

One of the things that a loan modification process on a mortgage loan will need is a hardship letter. This is an important document which is one of the first things that a lender will ask from you. The letter should be written in a way that will explain what made you fail or fall behind on your mortgage payment or why you cannot afford to pay the adjusted, higher payment. A good letter can have positive effect on your loan modification process. Keep your letter concise and precise. One or two pages should be enough for this. The reasons that can be considered as acceptable by a lender to hasten your loan modification process are loss of job, reduced income, adjustable rate mortgage reset, failed business, death of spouse, divorce, incarceration, lob relocation, damage to property either from natural or manmade causes or medical bills.

Aside from a hardship letter, you should also submit a proof of income and a monthly detailed report of your expenses and budget. You should also be able to show that you have to capability to make a modified payment. These loan modification process requirements should include the submission of monthly bank statements and pay stubs. Such documents are requested by the lender even when your application is past the ninety day period in order to keep their files on you updated.