Home Loan Modifications – Fraudulent or Viable Solutions
Today, millions of people are trying to keep their home from going into foreclosure. To keep this from happening, many mortgage lenders offer a home loan modification.
Although this is a viable solution, the process requires time and work. As the homeowner, you would need to gather all relative documentation, which would be the same information used for the initial purchase. Although every lending institution has slightly different requirements, most would need the following documentation for a home loan modification.
Mortgage Statement – Each month, the mortgage lender would have sent you a statement, which confirms the delinquency of the loan, as well as loan number.
- Second Mortgage Statement – If you have a second mortgage on the property, your certain lending institution would also provide you with a statement which is monthly in order to verify that you have same information as for the first home mortgage.
- Authorization to Release Information – Every lender is required complete this form that states a lender handling the home modification loan has your authorization to work on your behalf.
Hardship Letter – Lenders also require a signed hardship letter, which provides the reason that a modification loan is needed.
W2s – You will need to provide the prior two years W2s so they can determine your current income and identify any change in financial situation. If you were self-employed, instead of W2s, you would need tax returns for the last two years)
- Proof of Income – The lender of a home modification loan would need proof of income, for any signers on the mortgage loan. Proof of income may include paycheck stubs for the prior two months. This would reveal if there is an increase or decrease in income while reassuring that the lender could afford the loan.
Bank Statements – For your personal bank accounts, the lender would need the last three months, for all accounts. Information on the statements provides the lender with a detailed story of changes in deposits, daily balances, and liquid assets. A decrease of any of these again supports the need for the home modification loan.
The lender you choose should provide information and guidance and back each action taken toward finalizing the loan.
Daniel Sose is a real estate investor based in Florida. He is a former estate agent and writes widely about issues related to real estate and finance. His latest project revolves around establishing a network of national homebuyers in the UK to help put sellers in touch with buyers online.