| Mortgage loan modifications is a process by which the | | | | · Submit necessary documents like letter of |
| terms of the mortgage are modified outside the original | | | | hardship, Paystubs and bank statements for past 2 |
| terms of the contract agreed between mortgagor and | | | | months, W-2 Form for last 2 years for the employed, |
| mortgagee. In general any change to the mortgage | | | | Form 1040 for last 2 years if self employed, Rental |
| loan terms is a "modification". This program is very | | | | Agreement if the loan is not on your primary home, |
| useful for those homeowners who are defaulters or | | | | most recent mortgage statement & property tax |
| bankrupt and face an impending foreclosure. This | | | | statements |
| program enables them to get a reduction in interest | | | | Note: The hardship letter is the most important |
| rate or change from fixed to floating terms, reduction | | | | document for sanctioning the loan. Convince the lender |
| in principal amount, relief from late fees or penalties, | | | | about your hardship, how you fell behind and how you |
| extension of loan terms, relief from foreclosure, and | | | | plan to regain your financial position and your capability |
| more. | | | | to repay. The tone of the hardship letter should be |
| Find a suitable lender who is reliable, supportive and | | | | convincing, excusing, and succinct in nature with a |
| has a good reputation in the industry. Some of the | | | | positive tone. |
| leading lenders are Bank of America, Countrywide, | | | | You can cite hardships such as: loss of job or |
| Wells Fargo and Chase Bank (J.P. Morgan). Each has | | | | decrease in income, death or illness of homeowner, |
| excellent customer service set up with friendly officers | | | | spouse or family member, divorce or separation, |
| and an exclusive division (Lose Mitigation Dept.) for | | | | forced relocation by employer, increased domestic and |
| handling these cases. | | | | other expenses. It is better to take advice of an |
| The following tips are useful for facilitating negotiation: | | | | expert for a successful negotiation. |
| · An idea about your financial position and the | | | | Mortgage loan modifications are useful for those who |
| amount which you can earn per month | | | | are having a hard time meeting their monthly |
| · A brief plan about your requirements on | | | | payments, day-to-day expenses and fear an |
| consultation with lender | | | | impending foreclosure. This program comes to their |
| · Submit a proposal about your ability to repay | | | | rescue with its wide range of benefits and save them |
| the loan | | | | from disaster and that is why more and more people |
| · Ask the lender for forbearance or | | | | are coming forward to take advantage of this great |
| postponement of payments for a few months until | | | | program. |
| you are in a healthy financial position | | | | |