How To Get Your Loan Modification Approved

Loan Modification Tips- How To Get Your Loan Modification Approved

A loan modification can really provide you with much needed financial relief if you are having a difficult time making your mortgage payments. Here are some loan modification tips to help you get your loan application approved.

Loan Modification Tip #1 Thoroughly familiarize with the loan modification process.

You need to approach a loan modification in a systematic manner. Understand that it is not only in your best interest to avoid foreclosure, but in your lender's interest as well. Foreclosure is very expensive for lenders and having bad mortgages on their books hurts their bottom line. At the same time your lender is in the business to be profitable, so you must be willing to cooperate by providing the lender will all the information they need to make a decision and be willing to negotiate.

Loan Modification Tip #2 Gather all the necessary documents you need to present your case.

You will need to present a persuasive argument that although you are unable to meet your monthly mortgage payments now, that you are a good candidate to receive a loan modification. You need to have proof of your income from pay stubs, W-2s, tax returns and anything else that documents your income. You will also need a list all of your expenses, so you need to pull out your bills and other documents which show your monthly costs.

Loan Modification Tip #3 Demonstrate your financial hardship with a persuasive loan modification hardship letter.

As part of the loan modification process, you will need to include a hardship letter that explains your financial difficulties and shows why you are not able to currently meet your monthly mortgage payments. You also need to demonstrate that you are responsible and explain why you are a good candidate for a loan modification.

Loan Modification Tip #5 Provide an accurate financial statement and budget that demonstrates that you will be able to meet all your monthly expenses, including your mortgage payment, if your loan modification is approved.

You need to take all the information that you gathered earlier on your income and expenses and present the information in a financial statement and budget. These documents should show that although you cannot meet your mortgage payment now, that with a loan modification you will have the financial means to meet all your monthly obligations, including your mortgage payment.

Loan Modification Tip #6 Prepare and submit a complete loan modification application

Before submitting your loan modification application to your lender be sure that all of your information is complete and accurate.

If you follow all of these tips you have an excellent chance of having your loan modification agreement approved.