Loan Modifications - Before You Call Your Lender

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Loan modification what to do before you call your lender. While not everyone will be able to avoid foreclosure it is important to know what you can do to save your home from bank foreclosure. I have listed a few of the things you should do before you make that call.

Why Should You Call Your Lender:

You should stay in close contact with you mortgage lender if you are facing foreclosure, behind on payment or just finding it difficult to continue making your current mortgage payment. This is very important because it show the bank that you are looking for a solution and will to work with them in finding one fast.

Proactive Step To Take In Dealing With Lowering Your Mortgage

The process to finding a workable solution could take some time so be patient. You could speed things up by gathering the necessary paperwork that your lender may need. The bank needs to get a clear pitcher of your financial situation. For instance, have you lost income, did you get laid off from work or had to change jobs and now make less, is it because you have an adjustable rate mortgage and now it is resetting to a higher amount.

The banks need to know you monthly expenses, income and other owned assets. The sooner you lender has this information the sooner they can start looking at a solution for you. Word of caution, some banks are sending home owners load modifications int he mail without knowing any of this information. If you receive papers in the mail regarding a loan modification call you lender and request a loan modification package, fill it out and get it back to your lender.

Mortgage Loan Modification Documents To Gather:

Proof of income: Pay stubs one full month, Social Security Income Statement, Disability Income Letter, Unemployment Income letter. The bank needs documented proof of your income not just your word on paper. If you are getting assistance from a family member you probably want to get a singed statement from them regarding the monthly amount. If a household member is contributing to the mortgage some lenders request they pay stubs as well. Be sure to list any inc0me that you are receiving from all sources.

What Should Your Monthly Expenses Include

The bank wants to see a list of all your monthly expenses. It is important to list monthly mortgage payment, including any amounts of insurance or taxes that are not es crowed. all you monthly house hold expenses such as Food, for transportation, cable, auto loans, credit card payments, insurance, medical payments (out of pocket), water, lawn, day care, house alarm, entertainment, cell phones, home phone, lunch money for work, insurance for auto loan and any other expense that I have not mentioned here. If you are paying child support or alimony be sure to include it as well.

What Is Other Assets That The Bank Ask For

Other assets would be a list of other asset owed like real estate, 2nd home or rental property, boats, time shares. This may also include your retirement income or stock, bond or other investments. You will also have to list checking and savings account balances and provided bank statements for each account.

Finding a long term solutions is important and I am sure you don't want a temporary fix to your problem. So the sooner you speak to your bank the better. Stay in contact with your bank on the status of your loan modification. Be polite and curtieous to the person answering the phone a lot of time the company your calling is just the servicer and not the investor of your mortgage.

I hope this help..

Kim Dion

If you are a home owner about to make that call gather up these documents:

1.

Refinance Mortgage Options

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Refinance mortgage options for home owners are looking up thanks to the new Obama $75 billion Homeowner Affordability and Stability Plan announced to the world. If you are behind on your mortgage, facing foreclosure or just finding it a struggle to make you payments you may have options to help with your refinance mortgage options or you mortgage payments.

In this article I will talk about payment plan options. Keep in mind that every lender is different and may require additional information to offer you a mortgage refinance or loan modification. Most lenders are using a dept to income approach to qualify home owners for their modification programs.

Payment Plans

If you are plans are agreements between you and your mortgage lender that can bring your mortgage current. If you have fallen behind because of job loss, sickness, or reduction in income a payment plan maybe right for you.

The idea with a payment plan is to let the home owner get caught up on his mortgage payment by paying back the past due amount over time. It allow the home owners to become current on his mortgage by paying the current monthly mortgage amount and making small payment on the past due amount over time.

Your lender may have a repayment plan of 4, 6 or 12 months. This plan may be ideal for someone who is no more than one or two payments behind and the sooner you contact you lender the better. It is always best to call you lender the minute you realize that you are having a problem with your mortgage payment.

Loan Mortgage Options Paper Work

Some of the items you lender will request from you to start a mortgage refinance or loan modification will be a load modification package. It is best to start gathering these papers and have them prepared to fax to your lenders loss mitigation department or loan counseling department.

Have your current mortgage statement available, do an monthly expense report or total household expense and income. I will provide that document her on this page. Most banks require two months bank statements, 2007 & 2008 tax returns, most current months paycheck stubs, hardship letter, and any other documentation of income received.

References:
HUD - Guide To Avoiding Foreclosure
Help For Home Loans
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