Loan Modification Process

Loan modification process consists of several steps. These steps are outlined below to provide an understanding of the process.

Pre-qualification

Most good companies have the prospective clients go through a pre-qualification process. In a pre-qualification process, the client is asked a series of questions regarding the property value, loan amount and montly income and expenses. Based on these numbers as well as the nature of the hardship of the home-owner, his current income and length of hardship, a home-owner can either qualify for a loan modificaiton or not. For a free evaluation of whether you pre-qualify for a loan modification, go to FREE Loan Modification pre-qualification. If you don't qualify for a home loan modification, you can always determine your eligibility for a FREE Refinance pre-qualification and quote here.

Document Submission

Assuming you made it through the pre-qualification, the next step is to decide to move forward with the loan modification company for the complete process. A complete list of document includes current bank statements, proof of present income and past year tax returns, hardship letter, complete signed application and a processing fee. Also required are mortgage statements and P/L statements for business owners. It is good practice to make sure you have proof of all income and expenses stated on the complete application. At times, lenders may ask for detailed proof of any of the income or expenses stated.

Loan Modification

Once your application is submitted, you are out of the picture. It is now in the hands of the processing department. Learn more about our Loan Modification processing for loan modification. The processors will deal with the banks directly and negotiate on behalf of the home-owner to get a modification. This is perhaps the longest step and takes a lot of time and effort. Many home-owners who have tried to do a loan modification themselves have spent months negotiating with the bank and not gotten any results. This is perhaps one reason to go through a loan modification company like us to get a loan modification done. Get a FREE Loan Modification pre-qualification.

Final Step

A good loan modification consists of getting an ARM rate converted to a fixed rate. If a rate is already fixed, then a getting a lower interest rate resulting in lower payments is a good modification. If a home is seriously upside down, a significant principal reduction may also be obtained.

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