There are significant documents required that are reviewed by a servicers.
Hardship Letter:
To qualify for a loan modification customer must have a compelling hardship. The hardship must be known and given as many facts as possible to support your case for a loan modification. A is very subjective and pretty much a requirement in the course of getting a loan modification. There are a few adversities that are considered voluntary and do not meet the criteria quitting employment or reducing the total hours worked are typically unacceptable. The adversities are known and if there is an additional non-payment the customer can not use the same reason for non-payment otherwise their previous adversities was really not over and in many instances the customer is denied a loan modification.
Financial Statement:
This is used to determine the customer ability to pay. This is typically the first document reviewed by the servicers mediator. This document must clearly indicate monthly pay and everyday expenditures as well as current assets and liabilities. This is what makes and breaks the entire loan modification review. This document also shows whether or not the customer will be able to make payments if the mortgage is modified. There must be a surplus pay at the end of the loan modification or else the plan will be denied. The plan must be affordable. If a customer is severely over-leveraged with debt there is little chance that a loan modification will cure the delinquency. Monthly everyday expenditures are reviewed to determine what bills are necessary and what are unnecessary.
Proof of Income:
The proof of pay is usually a paycheck stub, a P&L Profit and Loss Account if self employed, or checking account account showing paycheck deposits. The proof of pay is required to prove the customer has steady pay. The customer must also give frequency of pay. The proof of pay must correspond with the pay shown on the financial account. Resolve any discrepancies.
Many people in today's economy have no choice but to turn to a loan modification. If you decide that a loan modification is right for your family make sure that you do the proper research. You need to make sure that the loan modification company that you hire uses a specialized loan modification attorney. For more information about loan modification please visit Modifications.com.
