How to do loan modification with some top lenders?In this article, I am suggesting ways and means to talk, handle and finally negotiate a loan modification with your lenders. These are time tested tricks, and procedure which people who does not want to hire an attorney, can use and be successful. I am not saying that you should not hire a licensed attorney, and by all means should hire a Nevada attorney but I am saying that if you are so hard pressed but otherwise feel capable of doing your own loan modification and like to sail through this troubled tsunami, then have my blessings and read the following pearls of wisdom.
First with Countrywide, there are some important steps you need to take.
Countrywide has made a settlement with State Attorney General of Nevada to do loan modifications. Countrywide, a rule of caution for everyone, is one of the most crooked bank of USA. Yes, close to the savings bank debacle of the 80’s. If one institution had single handedly destroyed the American fabric and American Home Dream, this is the one. What does Countrywide Bank need to see from you in order to approve your loan modification application? Here are some of the items you will need to prepare and submit with your application:
• Hardship Letter-a brief explanation detailing the circumstances that caused you to become delinquent, explain how you have tried to remedy the situation and tell the lender about your plan to get back on track and stay there
• Recent Income documents: pay stubs, W2, benefit statements, unemployment
• Bank statements and Tax returns for last 2 years
• Complete & accurate financial statements
How all of these documents are prepared and presented to Countrywide loss mitigation department can make the difference between getting your loan modified to an affordable payment or being denied.
A little up-front knowledge and preparation will give you the fighting chance you need to save your home with a loan workout. Once you know what Countrywide Bank is looking for in an acceptable loan modification application, you will be able to present your case in the best possible light to get an approval.
First, send them an authorization, if some third party is handling your case like an attorney. Then, wait a few days, and send them a hardship letter. Please see my blog for writing a hardship letter. Then just give them basic financial information about your mortgage, expenses, and income. A rule of caution, don’t give them all the details, so in case you need to change down the road, you can do that. Try some intelligence with them. Don’t beg them. Tell them that they had done something wrong. Not a single day passes, when Countrywide does not settle with someone the ongoing litigation.
Here are 8 Tips that will help you get your loan modification application approved:
Tip #1: You should know the lenders guidelines for approval before you even send your documentation. Wells Fargo is strict about all these guidelines, and your case would be unnecessarily delayed, if some of your documents are missing.
Tip #2: Make a financial statements which can show all your income and expenses, and that you are trying to cut down your expenses, and in fact, balancing your budget and expenses. Eliminate all the unnecessary expenses like cable tv, cell phone bill, extra car sitting in garage for long time, including of course sending in-laws back to their original home.
Tip #3: Write a convincing letter explaining your circumstances about your hardship situation. I have given some templates. Use them extensively with some revision. Sooner, I am going to write more about different economic hardship situation.
Tip #4 Substantiate your economic hardship with supporting documents. Each fact should be corroborated with documentary evidence.
Tip #5: Calculate your monthly mortgage payment yourself, and prepare yourself, if you can live with it because this is the payment you are going to pay for the next 30 years or so.
Tip #6: Take your time and complete the required loan modification application forms. Call the lenders to find out if they had received all the papers.
Tip #7: Submit a complete, accurate and acceptable application that meets the Wells Fargo loan modification program guidelines. Remember, if you are missing on any of these documentation, you are losing valuable time.
When you call the lenders on phone, make sure you plan to stay longer period of time, and also to be very polite with the representatives. Make sure you get their name, and write on your journal with time and date, and the result of the conversation.