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
- 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.
- 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
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