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LBPS Loan Modification Program Tips For Success

loan modification lbpsGetting a LBPS loan modification, is not as easy as you might think.  LBPS, now known as Seterus, is a loan servicing company.  Companies like LBPS, manage all aspects of mortgage loans. They collect loan payments, deal with escrow, insurance, foreclose on defaulted loans and also remit payments. So your loan payments would go to them and not your bank.Many homeowners are not aware that the bank from which they obtained their mortgage may not service their loan. Or  that their mortgage loan can be transferred to a different loan servicer at anytime.

In order to apply for a LBPS loan modification, you should be experiencing a financial hardship or are pretty certain you will in the near future. You may qualify for as much as a 50% reduction of your monthly mortgage payments.

A financial hardship can be a reduction of your current income due to job loss or reduced salary for example.   In addition financial hardships can be due to high interest rates that you can no longer afford or even medical emergencies. Or if your home’s value is now considerably less than you owe, also known an upside down mortgage.

If you’ve missed any of your monthly payments they may be able to get your passed due payments forgiven or at the very least added on the back end of your current loan.  LBPS loan modification program also states they may also be able to get you a “break” from your payments so you can give yourself some breathing room to get your finances stable.

There are few things you need to know as a consumer if you are planning to apply for a LBPS loan modification program. Read More…

Harp Program 2.0 – Can The HARP Refinance Program Help Underwater Homeowners?

harp 2.0 refinance programThe HARP program (Home Affordable Refinance Program) has been around since 2009, but the majority of underwater homeowners were unable to qualify.  Restrictions placed on the loan to value ratio ruled out the majority of the 11 MILLION plus homeowners who were underwater on their mortgages.

Recently, the guidelines were changed and should be of great help to homeowners who are upside down on their mortgages.  This has been dubbed HARP 2.0. The program is set to run until December of 2013.

What changed and who can qualify?

The biggest change with the HARP program 2.0 is that the limitations on equity have been removed!   It does not matter how far upside down your mortgage is, you can now take advantage of historically low interest rates with a HARP refinance.   No home appraisal is needed to qualify.  This is, of course, assuming you are current on your mortgage payments.  The HARP program is only available to those who are current (and some other stipulations below), so if you have missed a payment you need to consider a loan modification.

UPDATE – The LTV cap being lifted is not altogether set in stone yet.  While the government has stated this is the new goal of the HARP program, there is one thing you have to think about… What are the investors of these loans saying about this?  What is Wall Street saying about this?  These are people who own these loans, in most cases it is not your lender.

That being said, I highly doubt that every person with a high LTV will fit into these guidelines and qualify for HARP.   I believe a cap of somewhere around 125% – 150% LTV is going to exist for the 1st mortgage note, while some people may be able to get qualified a little higher LTV from different lenders.  So basically, those homeowners whose mortgage balance is twice what the home is worth may not qualify.

What caused this belief?  After reading my own post, I thought “this sounds too good to be true.”  When something sounds too good to be true, it usually is. Read More…

Does A Loan Modification Affect Your Credit Score?

loan modification affect credit scoreDoes Loan Modification Affect Your Credit Score?  The Answer May Surprise You.

If you are one of thousands of homeowners considering a loan modification but are concerned about ruining your credit, there are other issues that may have already impacted your credit rating.  Any credit changes from a loan modification would be very minor in comparison.

So Does Loan Modification Affect Your Credit Score?

In the long term…no.  But to understand why your credit score is less likely to be significantly damaged you need to understand how lenders report loan modifications. Plus, understanding how other actions taken to solve financial crisis are a lot more devastating to your credit than any small changes from a modification.

Your Credit Score Before You Apply For Loan Modification

When you make the decision to get a loan modification, it is because you have either missed at least one mortgage payment or you are certain you will in the near future. Or you’re making payments but not doing so on time.

Now to put this is perspective in regards to your credit rating, once you miss that one payment your credit score takes a hit.  Remember, you haven’t even applied for a loan modification yet.

In fact, missing your mortgage payments or filing bankruptcy instead of getting a loan modification will hurt your credit score tremendously.

Your Credit Score After A Loan Modification

The affect on your credit will be depended on how your lender reports your loan modification to the credit bureaus.  So if there is an affect on your credit score it will be a lot less and for a much shorter period of time. By contrast, a foreclosure on your report will put your credit rating in the red for years.

With a loan modification, if your lender  reports it as a “settlement” or an “adjustment” to your original loan, your credit score may be lowered.  Still, it will be nothing compared to missed payments, foreclosure and bankruptcy.  But there are ways around getting even a minor impact on your credit score after your loan modification.

How To Make Sure Your Loan Modification Does Not Affect Your Credit Score

The bottom line is, depending on how your lender reports your loan modification your credit rating can remain untouched.  So when you are negotiating the new terms of your loan, simply ask your lender how your loan modification will be reported.

The goal is to get your lender to agree to not report your loan modification as a “loan adjustment.”  This way, your credit report will show your modification as a loan but with a lower monthly payment.  To the credit bureau, it means you have not taken on additional debt and instead you  have lowered your monthly payments.

That’s positive for your credit rating.  No harm done to your credit score.  Over time, if you do not miss any payments after your loan modification your credit score will improve even more.

Another important note, make sure during the “trial modification” period that your lender reports your new modified payments as “current.”   The reason is to protect the homeowners credit rating during the trial modification period.

So does loan modification affect your credit score?  Long term…no. If reported properly it can actually help improve your credit.

You’ve got to keep your priorities straight.  Yes having a good credit rating is important, but if you’ve already missed even just one payment your credit score has already taken a major dip.

Focus on the bigger picture…saving your home and getting your finances in order. You’ll have plenty of time to rebuild your credit rating later.

If you have missed payments and your credit score has been compromised, don’t worry.  Once you get a loan modification and continue to make your payments on time, you score will start to improve each month.


Info On Commercial Loan Modifications

commercial loan modificationAre you looking for a good commercial loan modification company to help you lower your properties monthly mortgage payments?

Commercial loan modification used to be very hard to get approved, but recently more lenders have been opening up to the idea.  It makes sense to lower the interest rate, waive some late fees and lower the payment to make it more affordable for the current owner, then to foreclose on the property and have it just sit there.  By allowing a commercial loan modification to take place, your lender is essentially retaining a positive cash flow asset.

There are some tricks to getting these kinds of modifications done, however.   They can be more complex than residential loan modifications and the loan values are usually much higher than that of residential properties.  This excludes commercial properties from the same guidelines as residential properties where the cap is usually $427K.

Commercial loan modifications are getting done, however.  It just makes sense. When a commercial property defaults, there is much more at stake than one property in many cases.  Some times, a whole strip mall can be owned by the same person and the businesses of many individuals are at stake.  This is why lenders are willing to work with commercial property owners and keep the payments coming in, by reducing them.

It’s great to hear that businesses can finally get some help in addition to homeowners.  We all know that with a down economy, business slows down and it’s very hard to keep the doors open.  Here in CA, I’ve seen some of my favorite places close down, even some very good restaurants.  But, like most people, my wife and I weren’t eating out as much as we used to…

Anyways, commercial loan modification applies to mainly to the following types of properties:

  •     Hotels, Motels, and Resorts
  •     Condominium and Apartment Buildings
  •     Malls, Strip Centers, and Restaurants
  •     Office Buildings and Complexes
  •     Industrial, Storage, Warehouse and Manufacturing Facilities
  •     Health Care Facilities
  •     Mobile Home Parks
  •     Land Development
  •     Other Commercial Properties

And just like with residential loan modifications, commercial modifications can also yield principal reductions.  With a successful commercial loan modification, you can expect the following:

  •     Reduce Principal and Interest payments
  •     Extend the term of the note
  •     Interest only payments
  •     Suspend payments temporarily
  •     Stop Foreclosures, Auctions, and Sheriff Sales

If you are finding it hard to make your monthly payments, I really suggest you visit BestMortgageLoanModification.com and fill out their contact form.   Unlike residential modification companies where we have reviewed some different companies, I just recommend this one company for Commercial modifications.  They have been in business a long time, they are reputable and most importantly they know what it takes to get your modification approved.

Tips To Get A Citibank Loan Modification Approved

citibank loan modificationAre you attempting to obtain a Citibank Loan Modification?

When you apply for a Citibank mortgage loan modification, you might have a difficult time. Most of this, however, is brought on by your lack of knowledge of the process. Trying to get a home mortgage loan modification without understanding how they work nearly guarantees that you simply will fail. Given this, it is essential to know the ins and outs of loan modifications before you try to save your mortgage with Citibank. Here are the most typical mistakes which are made when somebody attempts to get a Citibank mortgage loan modification:

You get in touch with the wrong individuals

For one reason or another, individuals often do not understand that your bank is not usually your mortgage holder. The group that handles your mortgage is who you pay your payments to, and not necessarily who you got your loan from. That said, when you apply to obtain a Citibank loan modification, you’ll need to go to Citibank directly. Also, you need to make certain you have the proper department inside Citibank.  Often times, customers will get transferred to different departments repeatedly.  Each time, new paperwork will be required to fax into your lender.  The loss mitigation department is where you want to end up, preferably with a negotiator.  A negotiator can make the decision to approve or deny your modification.

You Skip Parts of the Application/Incomplete

Most businesses that offer loan modifications will simply discard any application that’s incomplete. These companies are literally inundated with requests and do not have the time to work with those that are incomplete or missing information. Occasionally you might get lucky and have a nice agent let you know, but usually you’re asking to be denied by skipping parts of the application. If you want a Citibank mortgage loan modification, then you need to make certain that you include every last bit of the information complete. Don’t skip anything.

You skip requests for further info

Like the application, you have to respond to requests with complete detail. Some people respond to Citibank loan modification requests with partial or incomplete information. This will get you denied rapidly and with out hesitation.  It is best to try and send the documents they have requested the same day if possible.  You want them to know that you are serious.  At the very least, when they request new paperwork or whatever it is, try to get it into them within 24 hours.

Lack of proper follow up

With the large numbers of individuals that are applying for Citibank loan modifications, it is not unheard of for an individual to send in info and it get lost. You should send all communications like this via certified mail to ensure that you have a record of your compliance or some other way that is able to be tracked.  Still, some things can and most likely will fall through the cracks. This is why it is so important that you follow up with Citibank regularly to insure that what you send in is received and documented. You need to also keep records of whenever you call, who you speak to, and what was said in the phone call.

As you are able to see, the majority of problems that you run into whenever you apply for Citibank loan modifications come back to communication and follow ups. Fortunately, these are extremely easy things to correct, and extremely simple to get right in the first place. No Citibank loan modification application should ever get denied over something so trivial. Make sure you have got all your ducks in a row, and that you simply maintain copies of everything that you submit. You should by no means send originals, simply because you will normally never see them again. Citibank loan modifications will usually go smoothly if you take the time to do it right the very first time.

For more information, you should read these reviews of loan modification companies that can help or call 888-766-3693.

How To Get A Chase Loan Modification Approved

chase loan modificationThe best way to increase your chances of your Chase loan modification getting  approved is to have a clear understanding of how the process works.  Now that may sound too simple to be true.  Now to be fair, there are a number of homeowners who simply don’t qualify.

However many homeowners are denied because of their failure to provide the required paperwork, prepare their financial worksheets and follow up with their servicer.  Simple things that anyone can do!

So to help you avoid these same pitfalls, here is an easy to follow guide to help you get your Chase loan modification approved.

Before we get into the details, be sure you meet the eligibility requirements to get a government modification.

Those requirements are as follows:

  • You have to live in the home you’re trying to get modified.
  • You must have received your mortgage before  January 1, 2009.
  • Your mortgage payment must be more than 31% of your income.  (All income including alimony, part-time work etc)
  • $729,750 is the maximum amount you can owe on your home.
  • You should have either missed making your monthly mortgage payments or are certain you will not be able to make future mortgage payments. Do not do this on purpose.
  • Make sure you can show documentation that shows you will be able to make your mortgage payments after you have been approved for modification.
  • No convictions related of fraud ,money laundering or tax evasion involving mortgage fraud within the last 10 years.
  • Must prove your financial hardship. (You will be asked to submit a hardship letter.)

Here’s where problems begin. Many homeowners applying for a Chase loan modification assume if they meet most of these than that is enough.  Or that it’s okay if they don’t have everything they need at the start of the process, they can always get around to it later.  You must have all of the required documentation and must meet the other listed requirements as well no exceptions!

When you contact Chase regarding a modification, the representative will pre-screen you to see if you qualify. So it is important that you have all of the documentation ready.  The representative will ask you for specific answers to questions regarding your income for example.  The figure you provide during this conversation is what Chase will base your eligibility on as you move through the process.  You have to make sure you have accurate numbers and be sure to include all income.

Also if you have other family members who also reside in your home, you do not have to include their income unless they are also signing  for the loan modification.  This is important to keep in mind. Too much income can get you denied as quickly as having too little income.

Persistence Pays Off

Once you have provided all the documents, financial statements, debt ratio worksheet, hardship letter and other paperwork.  Now you must commit a lot of time to managing the loan modification process.  You will need to constantly stay in touch with your servicer and get status updates.  It can take several weeks to complete or find out if you’ve been approved or not.   With so much paperwork to keep track of and thousands of homeowners all applying for their own Chase loan modifications.  It is so important to stay on top of the situation.

This means calling at least once a week.  Checking on your application.  Ask if you’re missing anything.  Find out if they need any additional information.  It would be a good idea to keep a journal listing the date, time, the name of the representative and what was discussed.  If your loan modification is denied you can refer to your journal if you have any kind of dispute.  Sometimes you can get a dedicated representative, usually towards the end of this process, and you will be able to email them back and forth.

Do You Really Want To Roll The Dice?

Finally, when it comes to taking steps to save your home from foreclosure don’t take unnecessary chances.  It’s very easy to get bogged down by all of the paperwork, constant telephone calls, and waiting for what may seem like an eternity for a decision on your loan modification.  Plus the stress you endure can be detrimental to your health.

You may be thinking that while that’s all true, there’s nothing you can do about it.  Actually there is a way you can take some of that extra weight off your shoulders.  A loan modification service can do the difficult work for you.  That doesn’t mean you can sit back and do nothing.  It means they have the experience and expertise to deal with the lender on your behalf and eliminate much of the stress and craziness often associated with the loan modification process.

You can increase your chances of getting your Chase loan modification approved with the help of professionals who already know the ropes.

In the event you would like help in obtaining a Chase loan modification, you can visit Loan Modification Company Reviews or call 888-766-3693.

When To Hire A Loan Modification Service For Help

loan modification serviceCongratulations!  You’ve made it to part 6, the follow up to “Following up with your lender“…  Our final article of the series.  You’ve learned about  almost every aspect of the loan modification process and hopefully you’re on your way to being approved.

If on the other hand you find yourself stuck in the process, don’t beat yourself up about it.  The application process can be intimidating for a lot of homeowners.  If you’re unsure if you can complete the process on you own, this article will help you decide when to use a loan modification service for help.

Ask yourself the following questions:

  • Are You 100% Sure You Understand What Documentation Is Required?
  • The amount of documentation a lender requires can be overwhelming.  Missing just one of those documents can cause your loan modification to be denied.
  • Do You Feel Comfortable Negotiating Terms With Your Lender?

Always remember, whatever terms your lender offers it will always benefit the lender first and foremost. So you need to be well versed in many aspects of loan modification.  Be honest with yourself and your abilities.

How’s Your Health?

You’re going through an extremely stressful time.  Losing sleep worried if you got everything exactly right, wondering if you’re making the right decision based on your current situation.  This can be tough on your health.  Can you physically and emotionally handle the process?

If any of the above questions are cause for concern…you may want to consider using a loan modification service for help.  You can read about them here.

Advantages Of Using A Loan Modification Service

A reputable  service employs experts in loan modification, mortgage specialists, appraisers, real estate brokers  and  may also have attorneys on staff or have a partnership with a law firm that concentrates in real estate law.

Using a loan modification service may also be a good idea because many have already established a relationship with several different lenders. This is also an advantage when it comes to negotiations.  When a service has dealt with a lender over time, they may already have a pretty good idea on the best way to approach a particular lender.

Let’s face it – the loan modification process is a pain! It’s not easy and requires a lot of time and effort.  It can be frustrating when your lender isn’t returning your phone calls in a timely manner.  It’s a problem for you if they contact you asking for documents you don’t have or want answers to difficult questions.  Lenders speak a “language” of terms and concepts that unless you work in that industry can be complicated.

A loan modification service can step in and do the heavy lifting for you.  The only downside is you will have to pay the service a fee to handle your application.

Sure, you can do the entire process on your own.  But doing it yourself does not mean it’s “free of charge.”  If you have little or no experience with the loan modification process, you can easily spend a lot of time, lose a lot of sleep and gain a lot of frustration, which is a high price to pay.  After all of that, you might now even get approved!

However you decide to proceed in the loan modification process, use all of the tips and information we’ve provided in this series to help you keep your home and create a better financial picture down the road.

Good luck!

Call 888-766-3693 if you have any questions about modifying your loan.  You can also visit Loan Modification Company Reviews  if you do want to utilize a service for help.

Following Up With Your Lender

following up with your lenderIf you’ve been following this series, you should have all your documentation ready and submitted to your lender.  If not…it’s okay. Just stay focused and get it done.  If you get stuck just review the previous articles in this series.

This article is part 5 in our loan modification series and will focus on the importance of following up with your lender. Once you’ve followed the steps in our previous articles and you have submitted your application for a loan modification you’re not done yet.

You cannot just sit around and wait to hear from your lender.  With thousands of homeowners all trying to get loan modifications just like you…it’s not a matter of if you’re going to get lost in the crowd…it can and does happen.  Also, due to the amount of paperwork involved it’s very easy to forget to include some required information.

How Often Should You Follow Up With Your Lender?

No matter how much your lender tells you …”We’ll get back to you about your application”…call them anyway.  Once a week is a good rule of thumb.

What Should You Ask Your Lender?

Inquire about your application.  Ask if they need any additional information.  Ask if anything is missing.  Did you forget to sign any of the documents?  Are there any documents you might have missed? What is the status of my loan modification?

Get To Know Your Representative

Chances are your contact at your lender’s office is swamped with homeowners applying for loan modifications.  But the big difference is most will not check in after submitting their applications. People assume there’s no need to do this.  That’s a huge mistake.

When you make your once a week check in… ask your representative how long he or she has been in loan modifications. Find out about their overall experience. Ask them what your chances are for getting approved.  While they may not be able to tell you what your odds are…they may be able to advise you  or point out any potential problems with your documentation for example.

Why Following Up Can Mean The Difference Between Getting Approved Or Denied

There are many homeowners who were denied because they failed to include a signature or provide an additional document.  If your lender requests a document…you need to get it to him or her asap.  A  request for a utility bill  may not seem urgent.  But if your lender requests that you need to take care of it immediately.  All requests no matter how small they may seem should never be ignored.  Failure to comply will quickly get your loan modification application denied.

Don’t take chances and don’t worry that you’re being a pest by calling your lender weekly.  You have a lot at stake.  You need that loan modification to save your home and help get your ” financial house” in order.  Who do you think they are more likely to help first? The person who turns in an application and never calls them back or the person who actively calls them once a week to check on their status?

You’re only a few weeks away from changing your life for the better, don’t drop the ball now.

In part 6 , the final article in this series, you’ll learn the ins  and outs  on “When To Hire A Loan Modification Service For Help.”

Call 888-766-3693 if you have any questions about modifying your loan.  You can also visit Loan Modification Company Reviews to learn more about companies that can help you.

How To Prepare A Hardship Letter

how to prepare a hardship letterOne of the requirements when applying for a loan modification is that you must show that your financial situation is so bad that without a loan modification you cannot continue to make your monthly mortgage payment.  This is done by writing what is referred to as a “Hardship Letter.”  In part 3 of this series, you will learn the basics of preparing your hardship letter.  If you missed the last part, it was entitled “Steps To Take When Applying For A Loan Modification“.

What Is A Hardship Letter?

A Hardship Letter is where you will have to convince your lender that due to specific reasons you are unable to keep up with your mortgage. You would also explain to your lender what changes you are making or are prepared to make in order to make your mortgage payments should you be approved for a loan modification.

When preparing your hardship letter, it’s important to be honest.  Your lender will require documentation from you to back up everything you claim in your Hardship Letter.  They can see your credit file too! So make sure you don’t make a statement about something if you do not have proof.  Failure to provide proper documentation can question your credibility with your lender and cause your application to be denied.

Here are a few simple guidelines you can follow to help you create a compelling and informative Hardship Letter.
What Kinds Of Situations Would Be Considered A Hardship?

Everyone’s hardship is relative to that person’s own situation.  In other words, what may be a hardship for you may not be for another.

However, there are some typical scenarios that are very common. (Please note this only a short list of typical reasons homeowners list.  It does not mean you cannot list others not mentioned here.)

Here are some examples of a valid hardship.

  •    The death of a spouse or other family member
  •    Unemployment due to a job loss
  •    New job but with lower pay (or a pay cut)
  •    Medical emergencies
  •    Divorce
  •    Adjustable interest rate increases
  •    Too much overall debt

How To Write Your Hardship Letter

Your Hardship Letter is a very important document to your lender.  So it’s extremely important to take your time and really compose your thoughts before you begin writing your letter.  You want to be thorough but you don’t want to ramble on and on either.

State Only The Facts

What you write should be truthful and should convince your lender you are having major financial problems and need a loan modification in order to help pay your mortgage. Remember whatever you state as a reason for your current financial crisis you will have to show documentation as proof.

Keep It Short And Simple

One page…two at the most is long enough.

Describe The Specific Cause of your Hardship

If for example you have missed mortgage payments state what caused this to happen.  Was it due to job loss? Medical or some kind of family emergency?  You need to be sure that the dates of the missed payments correspond to the circumstance that caused you to not make your mortgage payments.  Use dates to references the times in which hardships happened to you.

Show Good Faith To Your Lender

Not only do you have to prove hardship with your lender you will have to reassure the lender that you are taking steps to get control of your finances.

You Need A Plan

You’ve stated your hardship, you’ve shown what you’re doing to fix your situation.  Now you need to state what your plans are going forward that will allow you to financially meet your obligations once your loan is modified. Are you getting credit counseling?  Maybe you’re a taking financial planning class?  Cutting unnecessary expenses?

Ask For A Second Chance

You’re only human.  Humans make mistakes.  Let your lender know that you are capable of regaining your financial health and can once again be a responsible homeowner.  Briefly mention your family, accomplishments and your commitment to home ownership.  Describe how things are different now that would enable you to make your payments if they were lowered, if this is the case.

That’s all for now.

Coming up in part 4 of this 6 part series, you’ll learn about  “Preparing Your Income And Expense Worksheet.


Call 888-766-3693 if you have any questions about modifying your loan.  You can also visit our loan modification company reviews.

Preparing Your Income And Expense Worksheet

income and expense worksheetSo far in this series we’ve covered the benefits of a loan modification, the steps to take when applying for a loan modification and how to prepare your hardship letter.

Preparing Your Income And Expense Worksheet is part 4 of this series.  This document is such an important part of the loan modification process, it is vitally important to take the time and make sure it is correct and complete.  This is one document where the “numbers have to add up.”

Your income and expense worksheet will provide a clear financial picture for your lender.  The information you provide will  determine if you qualify for a loan modification.

Now let’s get started.

What Is An Income And Expense Worksheet?

This worksheet is a break down of how much you earn on a monthly basis, what you spend each month and your bank balances.

What Documents Do You Need?

You will need to provide documents of all gross monthly income plus documents that show your monthly expenses  Your ability to qualify for loan modification will be based on the Waterfall Method.  This formula is mandated by the U.S. Treasury department. The  formula, is your gross monthly income, monthly expenses, bank balances and current mortgage balance and current payment.

It’s important to know that this formula requires that your new mortgage payment not exceed 31% of your income. So when working on your income and expense worksheet you need to keep this in mind. If your income is too low or too high you will not qualify for loan modification.

*TIP* In our experience lenders are looking for you to  pretty much “break even” at the end of the month.  A negative or surplus of $100 is usually a good rule of thumb to follow.  So, if you subtract your expenses from your income and you end up with -$87.00, you are good to go!

Here’s a list of income documents to have ready.

Get a folder and label it “Monthly Income Documents”

  • 2 of your most recent paycheck stubs (If you’re married your spouse will need to provide the same)
  • Bank statements from the last 3 months
  • Statements from any additional income ie, child support, social security etc.

Additional Documents

Use a separate folder and label it “Monthly Expenses” and include the following where applicable.

  • Child support
  • Alimony
  • Child care
  • Cable
  • Other mortgage(s)
  • Credit card payments
  • Medical expenses
  • Tuition
  • Rent
  • HOA fees including insurance and any other fees
  • Automobiles
  • Tax liens
  • Utilities
  • Cell phone bill
  • Car Payments
  • Car maintenance, insurance, gas
  • Include any personal loans

Your expenses will help prove financial hardship so it’s really important to include ALL of your monthly expenses.

Bank Account Information

You are only allowed to have a certain amount of available cash in the bank.  If you have too much money in your account you will not qualify.  This does not include your retirement accounts.

Remember, the bank will want to see your bank statements, so resist the urge to lie about how much money you have.   They will also look at your credit report, so they will know how much your car payment is and things of that nature.

Whew!…yes that’s a lot of documentation to gather.  This is where hiring a loan modification service would be a good idea.  They can really help you out with this process.  Don’t worry we’ll cover loan modification services later in this series.

In the meantime, start getting your documentation together.  You want to give yourself plenty of time to get as much as possible.  Check and then check again to make sure you include all of your expenses and income.

In part 5 of this series, you’ll learn  how and why “Following Up With Your Lender” is an important part of the loan modification process.


Call 888-766-3693 if you have any questions about modifying your loan.  You can also visit our Loan Modification Company Reviews page.