How to Speed Up the Loan Modification Process

Foreclosure is always a race against time. Although a home loan modification can slow the process, you have less options the longer you wait. Not all lenders have the staff or experience to handle mortgage loan modifications. Even with a perfect case that is presented to your lenders, the process can drag on for months.

But you don’t have to sit and wait. There are some things you can do to speed up the process. Once your home loan modification is under way, these steps can help you get more positive results.

1. Put everything on paper. It’s not uncommon for lenders, especially smaller ones, to lose track of your application. To prevent delays, make sure all your efforts are documented and kept on file. This includes all the calls you make and receive, both from your lender and loan modification attorney. Keep receipts of all your transactions, and make copies so you don’t have to let go of the originals.

2. Save Money. Be sure and cut back on your normal spending so you are able to pay for your first few payments under your new modified term.  This way you will be ready to start making your payments if you get your loan modification early.  You must work hard and be financially disciplined before you start on your new loan modification term.

3. Stay organized. Be sure you organize and save all of the following, just in case your lender needs it in the future:

-Information about your property, including the estimated value
-Income documentation
-Any additional income, such as welfare, child support, etc.
-Your estimated total value, including other assets such as real estate, investments, savings and checking accounts, IRAs, 401(k), stocks and bonds
-Liabilities, such as existing loans, monthly bills, medical expenses, and tax liens

4. Keep all your bills. The financial worksheet will require you to dig up old bills and hold on to the ones that keep coming. This will help you keep the information as accurate as possible. You may also need to present these bills (or copies of them) along with your hardship letter, which explains why you need a mortgage loan modification. Even if they don’t ask for it, it’s best to include them anyway. That way, there’s no reason for your lender to doubt your statement. The more proof you have, the better your chances of getting that home loan modification.

Be sure to submit as much truthful and verifiable information to your loan modification lender so they are able make the best decision in modifying your loan for the long term.

Loan Modification Case Studies