Mortgage Loan Modification

You’ve taken the plunge, asked your lender about home mortgage modification, and completed the application process. You completed everything you needed to – gathering all your financial papers and drafting a hardship letter. What next?

Depending on your bank and how busy they are, you might need to be patient for a week to a couple of months while you wait for a final decision. Understand that they have a lot of cases to deal with at the moment. Lots of applications for loan modification appear in the lender’s mailbox each day, and they are already busy in the first place.

Once your application is received, it will need to be processed by the loss mitigation department. Every piece of information you’ve provided will be verified. In the case of mistakes or questionable information, be expecting a call from the lender asking for more information. Once that’s settled, the review process can start at the beginning. This can obviously be a time-consuming process, so it’s vital to put together the application package with care and precision. Being hasty costs you wasted time while you wait for modification approval.

At the end of the process if you get approval, you can expect a mailed notice. Some lenders may opt for telephone or email notification as well. The new loan terms are outlined in the document. The bad thing is that you don’t get to haggle back and forth to negotiate new terms. You just get to say yes or no, depending on whether you think you can handle the new payment. You may want to get the advice of a financial professional before accepting the offer.