The Big 4: Four Things to Remember when Considering Loan Modification

Although it may seem that only a very small number of homeowners receive approval for a loan modification, it is thought that many applications are rejected because of simple small errors. These mistakes, if noticed early could have been easily corrected. Employing the services of a loan modification attorney or a loan modification company can help to minimise these errors and ensure an application is completed accurately.

Here are 4 tips to increase the chance of approval:

  1. Be thorough. This may seem obvious, but it is amazing how little errors can be missed. Ensure you familiarise yourself with the process before you proceed. Make sure all required documentation is present and accurate. Proof read forms to catch blank spaces or incorrect answers. Be aware of deadlines and stick to them.
  2. Perfect the hardship letter. Cover all the required areas as thoroughly as possible. Research what to include and explain the situation in as much detail as possible. Proofread to ensure it is well written and grammatically correct. A well-produced and concise hardship letter could be the difference between approval or rejection, so getting it right is important!
  3. Know your credit score. Find out about credit scoring and how to improve or maintain it. It is necessary to maintain a good credit score throughout the process, otherwise it may make the lender think you are unreliable and they may be more inclined to reject your application.
  4. Keep records. Document everything you do towards preparing your loan application. Keep copies of important documents, and make a list of those required for the modification application. Record who you have contacted regarding the process and any information you received from them. Ensure you know who is responsible with what.