Do I meet the requirements for a mortgage modification
By Donald Morris
In many instances a mortgagor is set up on a forbearance plan before executing a mortgage modification which allows a lender to monitor the financial condition of a mortgagor during the repayment plan period to be sure the mortgagor will be able to submit payments. There are important forms required that are reviewed by a lender
Hardship Letter:
To qualify for a mortgage modification mortgagor must have a valid hardship. The hardship must be documented and given as many facts as possible to sustain your case. A is extremely biased and pretty much a requirement in the process of getting a mortgage modification. There are a few hardships that are considered charitable and do not qualify quitting a job or reducing the amount of hours worked are typically unacceptable. The hardships are documented and if there is an additional default the mortgagor can not use the same reason for default otherwise their previous hardships was really not over and in many instances the mortgagor is not allowed a mortgage modification.
Financial Statement:
This is used to determine the mortgagor ability to pay. This is typically the first document looked over by the mortgage company negotiator. This document must clearly indicate monthly earnings and expenses as well as current assets and liabilities. This is what makes and breaks the entire mortgage modification review. This document also shows whether or not the mortgagor will be able to make payments if the mortgage is modified. There must be a excess earnings at the end of the mortgage modification or else the plan will be denied. The plan must be affordable. If a mortgagor is severely over-leveraged with debt there is little chance that a mortgage modification will cure the delinquency. Monthly expenses are reviewed to determine what bills are necessary and what are unnecessary. Necessary expenses are meals, utilities and gas and an example of unnecessary are entertainment expenses, expensive phone plans and unsecured debt. Household expenses mortgage payments, utilities, and taxes take up most of the monthly budget. Do not make fixed costs look unreasonable will be a red flag to get further detail. The negotiators will always look for assets that can be liquidated.
Proof of Pay:
The proof of earnings is usually a paycheck stub, a P&L Profit and Loss Account if self employed, or checking account declaration showing paycheck deposits. The proof of earnings is required to prove the mortgagor has steady earnings. The mortgagor must also give frequency of earnings. The proof of earnings must correspond with the earnings shown on the financial declaration. Resolve any discrepancies
About the author
Donald Morris the owner of Stop Foreclosure. There is more information about loss mitigation at Help Stop Foreclosure. Also read our blog about Foreclosure Help from http://www.FreeArticlesAndContent.com
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