The Reason so Many People Fail When Trying to Get a Loan Modification

Doomed from the Start

Many times borrowers receive paperwork in the mail from their bank to begin the loan modification process.  Sometimes they call in for a modification and the lender sends them the packet or sometimes it comes to them automatically because they have begun to fall behind on their payments.  Many times borrowers mistakenly interpret this extension of help in the form of an application as an indication that if they simply fill out this paperwork, they will receive a modification.  Nothing could be farther from the truth.  Unfortunately, many times, it means exactly the opposite.  The lender truly wants you to fill out this paperwork so they can find out everything they need to know to get you to continue to make the high payments you are currently making.  Do you know how to fill out this packet and provide them these materials without completely ruining your chances of a modification?

Lost Paperwork

A huge problem in the current modification crisis is lost Paperwork.  In the modification process not only will you be faxing in a ton of documentation to begin the process (or at some point along the process), but you will also be faxing in updated docs every month until the modification is finalized.  A simple search online will show you the horror stories associated with this.  One of the largest reasons for turned down loan modifications is lost paperwork.  You may find yourself sending in the same bank statements and paystubs your lender has requested every single day for a month to make sure they got it and you could still receive a notice in the mail that your modification has been denied.  This happens to people all the time and nothing is more frustrating, especially when your home is on the line.  Do you know how to make sure the bank receives your paperwork?

Hardship Letter Doesn’t Qualify

Hardship letters are an important part of any loan modification.  A good hardship letter can make the difference on what department looks at your loan for modification.  However, many times, customers have hardships that do qualify them for a modification, but they are unable to express this hardship properly through their hardship letter to their lender.  Simply because of semantic s they lose out on the modification.  Do you know how to write a proper modification hardship letter specific for your lender?

Other Reasons

Currently there are many loan modification programs available.  There is HAMP, alt HAMP, 2mp, HAMP Unemployment program, and in-house modification programs for every single lender.  Also, every single lender is different.  Loan Modification 411 is place where you can come to learn everything you need to know about this difficult process.

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