Achieving a fast mortgage modification is all about fixing your screwed up mortgage and ultimately getting lower interest rates resulting in monthly payments that you can actually afford thus avoiding foreclosure. The thing is that for all these families on the verge of foreclosure timing is of crucial importance, it’s the second most valuable asset next to money. But on your way to get your mortgage modified there are a number of hassles that can slow you down and potentially cost you your very own home. That’s why we decided to come up with some of the most effective tips and ideas for getting a fast mortgage modification.
There are three essential stages related to applying for a mortgage mod – checking the requirements of your lender, preparing all the necessary documentation, negotiating the terms. Whether you achieve a fast mortgage modification or not it all depends on how each of these stages is carried out. The more you know about these separate processes the better positioned you will be to get what are asking for in the quickest possible manner – a more affordable loan so that you can cope with the monthly payments and still be able to pay your utility bills and feed your family. Let’s review each of these stages to find out how you can make the most in relatively short time frame.
Checking the Requirements
The exact requirements that borrowers must cover in order to qualify for a modification tend to vary amongst lenders so you have to check the exact details with your particular mortgage provider. The fastest way is to browse through their official website as most lenders have listed their requirements online. Give them a call in case you can’t find any info on the web.
Being aware of the requirements will let you know whether or not you will be able to qualify before you even invest time and effort which is really important for a fast mortgage modification.
Preparing your Documentation
Now that you are sure that as an applicant you meet all the initial requirements, the next step is preparing your documentation. This part is crucial for a loan modification basics or fast mortgage modification as the last thing that lenders want are confused applicants who don’t know what to send and what exactly they should write in their documents. Once again, the docs tend to vary from one lender to another but typically you will be asked to provide the following – financial hardship letter, proof of income, monthly budget.
When it comes to the financial hardship letter, we have to point out that most borrowers waste valuable time crafting their letter for weeks and weeks until they finally end up with something like the story of their life, how it all began, whose fault it was, what it could have been and things of that nature. Save those sorts of details for your personal journal. What lenders are looking for is an accurate, honest and up to date text no longer than 500-600 words answering the four basic questions: “What is your hardship? When did it occur? When will it be resolved? How much help you need?”
Negotiating
Approaching the negotiation phase in an intelligent and well-prepared manner is essential if you want a fast mortgage modification. What borrowers must be completely aware of is that they are indeed in a really good bargain position because lenders are just as interested in avoiding foreclosure as them. Each foreclosure costs banks around $50,000 while the drop in house prices all across the country means that they won’t be able to get a full return on their investment. A fast mortgage modification on the other hand can prove to be extremely beneficial for both ends of the deal as lenders will keep getting their money while families will remain in their homes. Remember this fact when negotiating and stand firm protecting your interests to the fullest.
Another important connection between a fast mortgage modification and negotiating is that borrowers have the legal right of a timely response on their request. According to the law, lenders must acknowledge such qualified written inquiries within 20 days and respond thoroughly within 60 days.
