Life happens. People lose jobs, get very ill, or have other circumstances where they are unable to pay their mortgage. If you find yourself in this situation, it may be possible to get your loan modified to reduce the amount of your monthly payment.
If you are thinking about applying for a loan modification, here are some things that you need to know:
Paperwork, Paperwork, Paperwork
When you fill out an application for a loan modification, the lender will require you to submit a large amount of paperwork. You will need to send ALL the required documents or else the application will be incomplete and the lender will reject it.
The documentation required by your lender usually includes paystubs, 3 years of SIGNED tax returns, a letter explaining why you have been unable to pay your mortgage (“hardship letter”), and bank statements. If you receive assistance from the government, you are usually required to provide your social security benefits letter or other proof of benefits. You will also be required to tell them what your bills are each month (how much you spend on electric, phone, food, etc.) The lender wants to see how much you make and how much you spend so that it can decide whether or not you will be able to afford the loan modification.
It is also very important to confirm that the lender received your paperwork. There are horror stories of people sending in paperwork dozens of times and the lender never received any of it. Further, as you get new paystubs and bank statements, it is best to send copies of those to the lender as they will want the most up to date information.
Your Foreclosure Can Continue
The loan modification may not stop your foreclosure case from going forward. The attorneys for the lender may not be informed that you and the bank are working on a resolution. If you are served with foreclosure paperwork, you should consult with an attorney immediately. Your attorney can help monitor the case and the loan modification to make sure that things run smoothly.
You May Not Be Able to Negotiate the Monthly Payment of the Modification
When the lender reviews your paperwork, it takes into account your income and your assets. Many lenders use software programs that calculate the amount of your new monthly payment. The lender will inform you that you have been approved for a loan modification and the new monthly mortgage payment. If you are unable to afford that particular amount, you might not be able to negotiate with the lender to decrease it. Many times it is a take it or leave it situation.
Document All Communication with the Lender
You should keep a log of all communication you have with the lender, especially if you are speaking to someone over the phone. Make sure to write down who you spoke with, the date and time, and a summary of the conversation. Keep any letters that you receive from the lender as well. It is important to have a record of such communications.
If you are looking at the possibility of a loan modification or are facing foreclosure, give the expert loan modification attorneys in Los Angeles at Vokshori Law Group a call today. We will go through your options and help you to a successful outcome. To schedule an appointment please contact VLG at 855.855.2608 or visit www.Voklaw.com for further information.