How To Get A Loan Modification
Before your home loan becomes delinquent, you may want to get in touch with the mortgage company to find out how to get a loan modification. A loan modification usually involves a change in either the interest rate or length of the loan repayment. You should consider trying to modify your loan if you cannot make the monthly payments for reasons such as a job loss, or an injury that prevents you from working.
- Call your mortgage lender to get a loan modification. Ask for a loan officer, and set up a time to meet to discuss your current situation. Before you go to the meeting you will need to prepare a hardship letter outlining why you need to modify your loan. Put all of the reasons for your request in the letter, and include when the issues began.
- Meet with your mortgage loan officer. Give them your hardship letter, and go over it in detail. You will also have to complete a new loan application, so the loan officer can review your current credit and employment. If you have a specific loan payment that you know you can handle, let the loan officer know during your meeting. You cannot request a payment that is unreasonable, so be realistic and then let the loan officer try to accommodate your request.
- Find out how long it will take to get a loan modification. You should also find out if the loan modification fees, if there are any, can be added into the new loan amount. Thank the loan officer and tell them to contact you if they need any other information in order to process your loan.
- Call the loan officer if you have not heard back on your request. If they advised you it would take a week to hear from them and you have not, do not hesitate to get a status update. There could be missing information causing the delay, or the loan officer may just be busy with other loan requests that came before yours.
- Once you get a loan modification approved, set up the closing time. Ask the loan officer if there is anything you need to bring with you to the loan closing. Once you sign the documents, find out when your payment is due and make sure to make it on time. You may want to have the funds automatically taken out of your bank account, which the loan officer can arrange at the closing.