As a Borrower your knowledge of the inner workings of a mortgage servicer is limited, making something like attempting to Apply for a Loan Modification Review very intimidating.
The first thing you must do if you decide to pull the trigger on applying for a loan modification is prepare your self. Determine what your servicer will require to review a loan modification, some mortgage servicers or investors require certain “lender specific” forms to be completed in order to complete the review or sometimes to be considered.
Basic Loan Modification Package
- Last 30 day paystubs.
- Last 2 Months Bank Statements..
- Last 2 years Tax returns.
- Request for Modification Form Or Request For Mortgage Assistance Form.
- Hardship Letter
- 4506T Form
Once you have completed you package with the above documents and any lender required forms that might be required the fastest way to submit your application is fax, never mail, some servicers might allow for you to email a complete package to their Modification Department directly. You should only allow up to 72 hours before calling you servicers modification department to confirm you are now in a active loan modification review. Find out if the package is being reviewed, if so are there any documents missing from the package.
Ask a lot of questions about what their steps are to review a modification request. Continue to follow up with your servicer every 48-72hours, push to get your file assigned to a Underwriter and if its not being assigned determine what is holding it back. Once assigned and being reviewed continue to follow up for documents that could be missing from the review. Missing documents is one of the most common reasons for a servicer to deny your modification request, and don’t ever rely on your servicer following up with you for missing documents or for regular updates. Following these steps cannot guarantee you a approved Modification but they can increase your chances, and better your knowledge of loan modifications and working with your mortgage servicer, which could not only help you in your current situation but later in life as well.
How To: Loan MOD by firstname.lastname@example.org