Loan Modification application

– How to get your application to the front of the line
Ok, so you have submitted a loan modification application to your lender and now…you wait, and wait and wait. Are you frustrated because nothing is happening no matter how many times you call in and each time you wind up speaking with five different people who tell you five different things? There are some secrets to get your loan modification application reviewed quickly and to improve your chances of getting a loan modification approved. Here are a few secrets and insider tips that can make a big difference when applying for a loan modification:

* Complete loan modification application package: Complete means that you have included 30 days worth of pay stubs or other income verification, 2 most recent bank statements (all pages), hardship letter along with any documentation to support your story (notice of lay off, hospital bills, etc), current mortgage statement, cover sheet, borrower information sheet, financial statements, proof of taxes & insurance amounts (if not included in your payments)
 Loan Modification forms complete accurately: Take the time to pull out all of your bills and other monthly obligations like day care, tuition, gas, groceries and use the correct amounts when you complete the financial statements. Make a few practice copies of the financial statements so you can use them to make sure your numbers balance. The final financial statements need to be error free.

Compute your debt ratio

using the current payment and then using the new payment to make sure you will qualify: The standard acceptable debt ratio is 45%. You compute this by taking your housing expenses (house payment, taxes, insurance & HOA) and dividing it by your gross monthly income. If it is off, you need to adjust your expenses on your proposed financial statement so that it falls around 45%.

# If your home value has declined significantly and you now owe more than your home could sell for, provide the lender with proof. Your local real estate agent can do a Comprehensive Market Analysis for you that will use recent sales and listings to arrive at the current market value of your home. Include this in your loan modification application to show the lender it makes more sense to offer a loan modification than to foreclose.

# Put all of the required forms and documentation in the correct stacking order and make sure you keep a copy of the entire loan modification application package for your records.

These are just a few tips that will help get your loan modification application reviewed quickly. Lenders are swamped with calls and loan modification applications. Think about it, an incomplete or incorrect loan modification application will just get shoved to the bottom of the pile. A clean, complete and professional loan modification application will get through the review process quickly and have the best chance of approval.

Make sure you have all the information you need and are prepared to give your lender a complete and accurate loan modification application package. You can be successful with just a little bit of knowledge and preparation. Be prepared today and get back on the path to financial security.