LOAN

Are You Prepared for a LOAN MODIFICATION?

Foreclosure
October 29, 2024•2 min read

The Process is a DRAG:

The loan modification application process is a huge drag. 

  • It's very complicated.  

  • It's different between the lenders.  

  • It's hard to get an update on what's going on the status of your file.

  • It's hard to complete the packages.  

  • Going at the process alone can end badly.

  • It takes a long time.   

  • You have to have a lot of time to call for follow up with the lenders.

  • If you use an attorney or an advocate to get help with this process it is another financial draw on your already stressed financial condition.

Requirements of a loan modification.

After taking an honest assessment of your situation and understanding all the various options you can utilize for STOPPING THE FORECLOSURE, along with the PROS & CONS of each, your decision may be to pursue a loan modification.

If a Loan Modification is your first strategy (we highly recommend alway be working on the backup plan also) then here is what you will need:

  • Last 2 years in W-2’s and Tax Returns

  • If you have your own business: Profit & Loss Statement

  • Last 60 days of pay stubs & bank statements

  • A hardship letter (very important how you write it.. We can help)

Be prepared because every 30 days you will need to send new bank statements and pay stubs.

How to a decision before your AUCTION DATE?

Getting approved in advance of the auction date will require that:

  • You need to stay proactive.  

  • You follow up regularly according to what they tell you.

  • Do everything you can to make it easy for them.  Like putting your loan number on the top of every page. 

Once you have sent in all the documents to the lenders and you start following up, here is what you are going to hear from them:

  • It's still in document imaging

  • Check back in a week.

  • Some of the pages were cut off.

  • It was illegible

Remember, you cannot just send it in and wait, counting on them to handle it with an urgency because of the upcoming auction date.  You must keep the ball rolling by following up.  


There are outside companies that will help you with this process.  The home owner still needs to complete all the information.  These companies are just sending it over on their behalf.  No outside company can guarantee you will get approved for the loan modification.  If they do say that RUN!

I hope you have found this information helpful.  

If you think a no cost one on one conversation with me would help you just give me a call or complete the contact for at: https://abound-res.com/contact.  I will do everything I can to help you.

If not already, you will be getting tons of calls.  I encourage you to use calm wisdom, evaluate all the options and don’t yield to emotional pitches.  I’m here to help you analyze and solve your needs to give you the best outcome.


Back to Blog