A Typical Bank Loan Modification Process

A loan modification is a change to the loan terms that is agreed to by and between the lender and the homeowner. The lender will modify the existing loan(s) in order to work with the homeowner because of a hardship. The purpose is to help make the loan(s) more affordable. Usually loan modifications are in the form of a rate reduction and/or fixing the rate for a certain period of time and/or even lowering your principal balance in extreme cases. In the past, loan modifications were only utilized when a bo rrower was delinquent and suffered a hardship such as a job loss, divorce, or illness. Borrowers can even obtain modifications from their lender to convert to a fixed rate loan from an adjustable rate mortgage.

The earlier the homeowner addresses the issue, the better the chances are of negotiating a lower fixed rate and a payment that is manageable. If the household can afford the home, but not their current mortgage, then they may be eligible for a loan modification. A key factor that is required in every loan modification submission is the existence of some type of a hardship. The hardship can be temporary in nature or permanent, but the borrower must be able to prove the hardship.

The following are a sample of hardships that may get a loan modification request approved:

1. Adjustable Rate Mortgage has re-set (causing an increase in the monthly payments)

2. Illness to yourself or family member

3. Loss of Income or Reduction of Income

4. Loss of Job, changing of jobs

5. Damage to the Property

6. Unable to sell the Property

7. Failed Business

8. Job Relocation

9. Death of a Spouse or a family member

10. Incarceration

11. Divorce or Separation

We know how serious your situation is, and how important your home is. This is why it is very important to work with experts to resolve your situation with the best options available as soon as possible. Please review the steps below:

STEP 1 - CONSULTATION

Please give us a call to start your initial consultation. We need to talk to you to make sure that a Loan Modification is your best option. 

STEP 2 - GATHER FINANCIAL DOCUMENTS

We will need the following documents:

  • Hardship Letter
  • Most Recent Mortgage Statement
  • Last 4 Bank Statements
  • W2 Forms (2008 & 2007)
  • Tax Returns (2008 & 2007)
  • Income/Expense Financial Statement

Then, we will analyze your information to create a negotiation packet to submit to your lender. We will fully review your case before we start negotiations. NOTE: This process could take up to 45 days to be completed depending how fast you provide us with all necessary information.

STEP 3 - NEGOTIATIONS

Our team will submit your financial packet to your bank and will start negotiations. Negotiations will continue until we achieve an acceptable agreement approved by you, the homeowner.

STEP 4 - APPROVAL

When you modification request is approved, all final modification documents will be sent to you to get your approval.

Remember, this will not happen overnight, however, in most cases it takes 30 to 60 days to complete the process. We are here to assist you at all times. 

 

Lenders Loan Modification Process

Bank of America Loan Modification Process Option One Loan Modification Process
Wells Fargo Loan Modification Process Ameriquest Loan Modification Process
Chase Loan Modification Process AHMS Loan Modification Process
GMAC Loan Modification Process Altegra Credit Loan Modification Process
Suntrust Loan Modification Process Bancorp South Loan Modification Process
Ocwen Loan Modification Process B.F. Saul Mortgage Modification Process
Wachovia Loan Modification Process Boshwit Bros Loan Modification Process
Litton Loan Modification Process Cimarron Loan Modification Process
Aurora Loan Modification Process 1st Trust Bank Loan Modification Process
JP Morgan Loan Modification Process Davison State Bank Loan Modification Process
PHH Loan Modification Process Fentura Mortgage Modification Process
Citibank Loan Modification Process First Horizon Loan Modification Process
Flagstar Loan Modification Process First Tennessee Loan Modification Process
Wilshire Loan Modification Process Resurgent Capital Loan Modification Process
EMC Loan Modification Process The State Bank Loan Modification Process
National City Loan Modification Process Select Portfolio Servicing Loan Modification Process


Loan Modification Case Studies

Keep or Sell Your Home?

Not qualified or dont want to stay in your home? We can link you with a short sale specialist for a quick sale.

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