Tips for getting a mortgage loan modification

Writing on Bankrate.com, Marcie Geffner lays out the best ways to get a mortgage loan modification.

There are three major points:
Getting a loan modification is difficult, but not impossible.
Homeowners need to submit full documentation and be persistent.
A housing counselor can explain the modification rules and terms.

Getting a mortgage loan modification might seem like a quest only a mythic hero could achieve. After all, the ranks of those who've lost homes in foreclosure dwarf the number of homeowners who've received mortgage help.

The seemingly mysterious nature of who qualifies for a loan modification is legendary among housing counselors. But these experts say there are ways homeowners can better their chances.

Following are housing counselors' tips for getting a mortgage loan modification:

Complete the package. Homeowners need to submit paycheck stubs, a hardship letter, a budget and any other documents the loan servicer wants. If even one document is missing or outdated, the entire file will drop to the bottom of the pile.

Ask questions. Make sure you know exactly what to provide to servicers. Servicers often request two paycheck stubs on the assumption that two paychecks represent one month's income. But a homeowner who is paid weekly, bimonthly or monthly may have to submit more or fewer paycheck documents. Similar misunderstandings about other documents can be equally problematic.

Stay in touch. Homeowners should call the servicer at least once a week and check on the status of his or her request. Ask whether the file is complete. Review the documents. Explain any special or changed circumstances.

Be persistent.

On the other side of the table, representatives of loan servicers also offer tips for homeowners seeking a modification. They include:

Loan modifications come in "lots of flavors" and not everyone is qualified for the federal government's Home Affordable Modification Program.

Label your documents. To survive that storm of paperwork, homeowners should submit a complete package, put their names and loan numbers on every document and call to confirm that all the pages were received.

Release your tax return. Homeowners are required to not only submit income documents, but also sign IRS Form 4506-T, which allows the servicer to access the homeowner's federal tax returns.

For your next title order
or if you have questions about what you see here, contact
Stephen M. Flatow
Vested Title Inc.
648 Newark Avenue, P.O. Box 6453
Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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