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Do I meet the criteria for a mortgage modification

In many instances a mortgagor is set up on a stipulated plan before implementing a loan modification which allows a mortgage company to monitor the financial condition of a mortgagor during the special forbearance period to be sure the mortgagor will be able to make payments to the lender. There are vital documents required that are reviewed by a mortgage company

Hardship Letter:
To qualify for a loan modification mortgagor must have a valid hardship. The hardship must be documented and given as many facts as possible to support your case. A is extremely biased and pretty much a formality in the process of getting a loan modification. There are a few hardships that are considered voluntary and do not meet the criteria quitting a job or decreasing the number of hours worked are typically unacceptable. The hardships are documented and if there is an additional default the mortgagor can not use the same reason for default otherwise their previous hardships was really not over and in many instances the mortgagor is not allowed a loan modification.

Financial Statement:
This is used to verify the mortgagor ability to pay. This is usually the first document reviewed by the mortgage company mediator. This document must clearly indicate monthly earnings and operating cost as well as current assets and liabilities. This is what makes and breaks the entire loan modification review. This document also shows whether or not the mortgagor will be able to make payments if the loan is modified. There must be a spare earnings at the end of the loan modification or else the plan will be denied. The plan must be affordable. If a mortgagor is severely over-leveraged with debt there is little chance that a loan modification will cure the delinquency. Monthly operating cost are reviewed to determine what bills are necessary and what are unnecessary. Necessary operating cost are meals, utilities and gas and an example of unnecessary are entertainment operating cost, expensive phone plans and unsecured debt. Household operating cost loan payments, utilities, and taxes take up most of the monthly budget. Do not make operating costs look unreasonable will be a red flag to get further detail. The negotiators will always look for assets that can be liquidated.

Proof of Wages:
The proof of earnings is usually a paycheck stub, a P&L Profit and Loss Declaration if self employed, or checking account declaration showing paycheck deposits. The proof of earnings is required to prove the mortgagor has steady earnings. The mortgagor must also give frequency of earnings. The proof of earnings must correspond with the earnings shown on the financial declaration. Resolve any discrepancies

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Donald Morris the writer of Stop Foreclosure. There is more information about loss mitigation at Help Stop Foreclosure. Also read our blog about Loan Modification Help

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