Getting Your Mortgage Modification Approved

Mortgage modification is a process where the terms of the mortgage are changed outside of the original agreement made by the borrower and lender. Technically speaking, any change to the mortgage terms is a modification. A loan modification will typically result in the change to the loan's monthly payment, interest rate, term or outstanding principal. This is usually done when the borrower has the inability to stay current with the payments.

Loan modification is very difficult to achieve. Most banks are adamant in allowing debtors modification request and even the few who succeed have a rough time executing it. To ease the process, there are a number of steps that can be followed to ensure success. It is important to follow through to the last letter to increase success rates.

First step is to describe the trouble you are in and what led to the situation. It is important to provide details exhaustively because you are trying to explain why you did not meet your mortgage payment requirements. The more convincing you sound the better your chances of having your modification request approved.

Explain to the lender your desire to sustain your loan payment because you still want to keep your home. You must make a clear statement on the wish to settle the loan in the long run. Next is to propose the possibility of selling your property if you have any listings.

It is important to explain to the bank or lender how you intend to finance your loan in case the modification is awarded to you. What is your source of income? Also use the fact that the bank will lose in case of foreclosure and will benefit if they awarded you with the modification request.

One of the most important parts of modification claim process is to correctly outline your expenses. The other steps involved trying to convince and win sympathy. When it comes down to facts though, the presence of documented figures is what will save you. This will clearly show benefits that a lower mortgage payment will have on your family. It is advisable to have an attorney filing all the paper work at this stage.

Finally and most importantly, validate your credit report free of charge. The variable sin your credit report has a major impact on whether you will win the modification case or not. Owning a personal copy helps prevent falsehood.