Don’t Make These Do It Yourself Loan Modification Mistakes
Don’t Make These Do It Yourself Loan Modification Mistakes
A loan modification can really help if you are a suffering a financial hardship and having a hard time meeting your monthly mortgage payments. You can successfully negotiate a loan modification yourself by dealing directly with your lender, but you do need to have the proper knowledge and present a compelling case for yourself. Here are 7 do it yourself loan modification mistakes that you need to avoid in order to be successful at getting your loan modification approved.
Mistake #1 Contacting your lender about a loan modification without understanding how the process works or what your lender’s requirements are.
You need to become familiar with the loan modification process itself and also what your lender’s requirements are before you ever contact them. Do some upfront research on loan modifications and also see if you can find any particulars about your lender’s criteria before contacting them.
Mistake #2 Hiring an expensive loan modification service
You can do a loan modification yourself so there is no need to pay huge fees to a loan modification company. If you do decide to hire a service, make sure you thoroughly research a loan modification company’s background and credentials before paying any fees.
Mistake #3 Talking to your lender’s collection department
If the collections department contacts you, they are not the ones that can help you with a loan modification. You need to speak with your lender’s loss mitigation department. They are the ones that handle loan modifications. The collections department simply wants to collect on a debt. They are not equipped to help you with a loan modification.
Mistake #4 Not writing an effective hardship letter
Your hardship letter needs to be concise and compelling. It needs to describe your financial hardship and convince your lender that the reason you are behind on your mortgage payments are because the payments are too high given your financial situation.
Mistake #5 Preparing loan modification applications that contain errors or omit information
It is imperative that you submit an accurate and thorough loan modification application that contains all the information your lender has requested. Mistakes can delay and even cause your application to be rejected.
Mistake #6 Requesting an unrealistic loan modification
If you propose a loan modification that doesn’t meet the criteria of your lender your request for a loan modification will most likely be rejected.
Mistake #7 Not submitting a complete loan modification application
If you are missing forms or proof of income requested by your lender your application could be rejected. With so many requests for loan modifications these days, you need to be sure you submit an accurate and complete loan modification application.
Do it yourself loan modification is possible. Do your upfront research, propose a realistic loan modification request that is in line with your lender’s criteria, and submit an accurate, complete, and compelling loan modification application.
