Stop Foreclosure

For The American Homeowner

Loan Modificaton: Do It Yourself Tips

This is an article on loan modification tips.

Homeowners who want to obtain a loan modification need to plan and execute actions towards those efforts carefully and tediously. By using some of the insider tips below you will drastically increase the chances of obtaining a modified mortgage offer. It is worth the effort if you can lower your mortgage payments and make home affordable.

Make sure you have a clear hardship letter

  • Make sure your hardship makes sense both financially and chronologically. The best way to describe it is by telling the truth.
  • Keep it simple and competent. Your hardship letter should not be more than a page and should focus on the parts that are relevant to he lender.
  • If you are looking for a long-term solution make sure you show the lender why and you will be able to overcome this hardship and sustain the ability to pay your mortgage.
  • Type it, write it with care and sincerity.
  • Don’t blame the lender (This one is particularly important)

Create a financial worksheet

  • Assets – anything you own or have with worthy value. e.g. investments, cars, property, etc.
  • Debt Liabilities – Any debt you owe. e.g. credit cards, car loans, any other unsecured loans, any other secured loans
  • Revenue and Income sources – dividends, odd jobs, primary and secondary income, any other cash flows
  • Bills and other financial obligations – all expected negative cash flows
  • Use Professional Presentation – You may want to type your financial worksheet . You can use a template online.

Create a Monthly Budget

  • Bills – income = Surplus
  • Make sure your monthly budget supports your request from the lender
  • Type it

Be Persistent

  • You will have to hear the phrase “no” over and over from entry-level reps
  • Record your conversations in a journal
  • This will not be easy and you are gonna have to dedicate many, many, many hours to it

Be Respectful and Professional

  • Do not at anytime become over emotional.
  • Do not use profanity.
  • try to be as polite and gracious as possible.

Ask Questions

  • It is OK to ask your lender questions if you don’t understand something in the paper work or conversation.

Start Your Loan Modification Campaign Early

  • Do not wait to the last-minute

June 18, 2010 - Posted by | finance

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