How to Get Your Mortgage/Loan Modification Application to the Front of the Line

Getting Your Mortgage Mod Application to the Front of the Line

With thousands of homeowners submitting their mortgage modification applications, how do you get yours noticed? The answer is simple, make your application and hardship letter compelling so it gets noticed, and submit the required information. 

What is the Purpose of a Hardship Letter?

The hardship letter is your only opportunity to let your lender know about your financial hardships. Your letter explains to the lender why you can no longer make your current mortgage payments. It gives them a complete picture of your current financial situation and how you plan to make your future payments.

Acceptable Hardship Reasons

To ensure you are successful in getting your mortgage modification application approved, you need to make sure your hardship letter falls within the acceptable list of reasons that lenders will consider for granting your application. These include the following:

1. You lost your job or your wages have been substantially reduced.
2. Death of one of the homeowners, typically a spouse resulting in financial hardship.
3. Health issues causing excess in medical expenses.
4. Divorce or separation.
5. Job relocation.
6. Your adjustable mortgage reset at a higher interest rate that is not affordable for you.
7. Decline in property values in your area.

Tips for Writing Hardship Letters

The following are tips to writing a successful hardship letter:

• Include the loan number, property address, your name and contact information.
• The shorter the letter the better.
• List your hardship and when it occurred.
• Measures you talking to cure your financial such as a second job or part-time employment. Starting your own business.
• Tell your lender how you plan on making the new modified payments to get caught up and current.   
• Provide information about your community activities showing you are a responsible person. Any volunteer work you do. Anything to show your moral character.

Hire a Mortgage Modification Company vs. Doing it Yourself

 

A mortgage modification company has experience getting the job done. You can do the job yourself if you have the time and do some research.   You may want to seek the help of a licensed Realtor to provide you with comparable property sales to supply to your lender in support of your application. The Cameron Team has been helping their clients in the Phoenix and Scottsdale areas with finding solutions to their financial situations with mortgage modifications, short refinances, and short sales.  Their agents’ experience and knowledge and genuine care for their client’s situation is what drives them.  Helping clients save their homes from foreclosure is one of the things they do best. For more information, you can contact Jeff Cameron at www.NoForeclosureAZ.com.

 

Submitting the Right Documentation

If you do opt to complete the application yourself, be sure to fill out the right application and submit all the documentation that your lender requires. Typical financial information that lenders require include the following items:

1. Hardship letter

2. Authorization letter authorizing any third parties to negotiate with your lender’s loss mitigation department.

3.  Last two paycheck stubs.

4.  Your most recent bank statements.

5.  W-2 for 1099 forms.

6. Last couple years income tax returns.

Your lender will appreciate receiving the required information in an organized manner because it makes it easier and quicker for them to process your application.  A little assistance and effort on your part will pay off and help you get your mortgage modification approved so you can move on with more important matters.