From the desk of Art Fried…RE: Loan Modifications in Phoenix, AZA loan modification, sometimes called a loan mod, is a permanent change to one or moreof an existing home loan’s terms and/or conditions. For example a homeowner who fell behind on his/her payments due to a financial hardship may contact their lender andnegotiate a new interest rate, a longer term, or even a principal balance reduction. A loanmodification is not a short sale, a forbearance agreement, or a repayment plan. These areall different approaches to avoiding foreclosure and you can contact your lender for information on these foreclosure questions.When a loan modification is requested, a lender will typically send out a small packagewith a return envelope so that all the necessary documents can be sent back correctly.This package includes the necessary documents needed to consider the eligibility of aloan modification.These documents can be but are not limited to:1.
A Hand Written Hardship Letter
– Perhaps the most important document of all, thismemento if you will, explains how and why you should be considered for a loanmodification. Be sure you completely lay out what kept you from meeting your mortgageobligations and how you will be able to pay after the loan modification is complete.Example: I bought my home at 123 Main Street, in August of 2005. At that time I wasmaking over 70,000 per year and things were fine. Then in March of 2007 I suffered aheart attack. The medical bills were adding up. Two months later after missing so muchwork I lost my job due to the economy. I began paying my mortgage with the littlesavings I had. Finally, I sat down and figured I just can’t go on paying this monthlyamount of $1,697 every month. Please consider either reducing my principal balance or lowering my interest rate permanently. Doing so will allow me to keep my home and mydignity. Thank you and God bless. Charles Teague, Phoenix, AZ 123 Main St.2.
A Financial Statement
– Reveals all the assets and liabilities of the borrower. Incomeand assets such as your current job, vehicles owned, stocks and bonds shall all be listed.Liabilities such as your cell phone bill, electricity bill, water & sewer bill, even prescription drug costs and even food, gas, and entertainment.*Never “fluff” the numbers hoping that they will side with your hardship even more.Remember you have to show that you can afford the modified payment and showing thatyou have money left over each month is a good thing.3.
Last 2 Years W-2’s
– The last two years of returns you filed with your state andfederal taxes. The lender wants to see if an income change has already occurred and predict future income levels.
Leave a Comment