Lois Maljak

If you’re worried about home foreclosure, obtain a loan modification application packet from your mortgage lender and provide everything your lender requests. Most lenders require the following before considering your request to modify your mortgage: Brief cover letter, along with a complete list of what’s in

When you apply for a home loan modification, you will need to prepare financial statements for the mortgage lender that list your household income and expenses. The decision of whether your lender agrees to a loan modification and the terms you ultimately agree on comes down to numbers. You should consider completing these two financial statements: One showing an accurate accounting of your finances at this very moment Another illustrating any cost-saving changes you’re planning to implement, such as going with the basic plan on your satellite TV service If your lender has its own financial forms, use those instead of preparing your own.

When applying for a home loan modification, a key component of the application is the hardship letter, the homeowners’ description of the financial setbacks they’ve experienced that resulted in their inability to pay their monthly mortgage. Recognizing eligible hardships Not everything qualifies as a bona fide financial hardship.