Things You Need to Know About a Loan Modification

Do You Need A Loan Modification?

Circumstances in life may cause you to face the threat of a foreclosure. A foreclosure, if unstopped, will lead to you losing your precious home. There are several remedies that you can apply to stop or delay an impending foreclosure, including declaring bankruptcy, conducting a short sale or seeking loan modification help. A loan modification mitigation is the only sure way of saving your home from a foreclosure, so do you really need it?

What You Need to Know Before Applying for a Loan Modification

The HAMP guidelines stipulate who is eligible for a loan modification service and under what circumstances one can qualify for it. Homeowners considering this process should carry out due diligence on the various loan modification companies to understand how the different processes, fees and time compare. Some agencies might be too rigid or even take too long to process your application, so it is best to make your decision an informed one.

There is a standard list of requirements indicated on the HAMP website for homeowners wishing to apply for a loan modification. Some loan modification inspectors, however, may  require more information than what has been listed. Prepare a detailed checklist with the help of a loan modification specialist and ensure that all the listed requirements are on hand. Some of the must-have documents are your hardship assistance letter, loan payment documentation, proof of financial hardship, proof of income and your IRS form 4506-T.

Loan modification is riddled with lots of financial and legal jargon which, in some cases, might cause the homeowner to miss out on some important parts of information. Make sure to query everything that is unclear. A loan modification attorney is qualified enough to understand and respond to all the related queries, so do not hesitate to make sure everything is well understood.