What to Expect When Modifying Your Loan Yourself
The potential benefits for modifying your home, depending on your situation, is very rewarding. As a result, homeowners throughout our nation are contacting their lender to be accepted as one of the beneficiaries to this program. However, far too many homeowners contact their banks without researching the qualifications and process of a modification. If you are trying to complete a modification yourself, here are some helpful hints in moving forward.
When you first contact your Mortgage company they will require you to fill an application pertaining to your financial stability. They will also require documentation in order to verify your application and any other documents they require. The documentation typically required is: 3 months bank statements, 3 months pay stubs (most current), past two years taxes, W2s, K1’s if self employed accompanied with profit and loss statements, etc… If you have been through a bankruptcy (the house is not included) then additional documentation would be required which may vary depending on the lending institution. After you have completely organized and prepared your file, the next step is sending the information to your mortgage company via fax or mail.
Your initial contact after sending your file to the bank should be a week later, especially if you faxed the information over. If you are informed the bank has received your information then pleasantly inquire if it is being reviewed. If your file is being reviewed, then your file is moving nicely through the process, if not, then you will want to call them at least once a week to verify the momentum of your file. Remember, there are a lot of homeowners who have the same hope as you and this initial review may take 60-90 days.
Extended a Trial Modification:
After your file has been reviewed and your file has been determined eligible for a modification your bank will then extend a trial modification. The trial modification allows the bank to further determine if they are willing to offer a permanent modification. The trial period is typically three months, however trial modifications have been known to last 6-9 months. Remember, about 30% of the people who have been denied a permanent modification who were extended a trial offer were denied because of missing a payment, the payment was received but not on time, or stated income.
This is where every homeowners is hoping and desiring to be. It is the final letter or call stating to the homeowner that their file has been accepted, determined eligible, and the modification is offered.