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Do I qualify for a mortgage modification

In many occasison a mortgagor is set up on a forbearance plan before completing a mortgage modification which allows a servicer to monitor the fiscal condition of a mortgagor during the special forbearance period to be sure the mortgagor will be able to make payments to the lender. There are significant forms required that are reviewed by a servicer

Hardship Letter:
To meet the requirements for a mortgage modification mortgagor must have a valid hardship. The hardship must be known and given as many details as possible to support your case. A is extremely biased and pretty much a requirement in the process of getting a mortgage modification. There are a few adversities that are considered charitable and do not qualify quitting a job or decreasing the total hours worked are typically unacceptable. The adversities are known and if there is an additional default the mortgagor can not use the same reason for default otherwise their previous adversities was really not over and in many instances the mortgagor is not allowed a mortgage modification.

Financial Statement:
This is used to verify the mortgagor ability to pay. This is usually the first document looked over by the lenders mediator. This document must clearly indicate monthly income and operating cost 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 extra income 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 operating cost are reviewed to determine what bills are necessary and what are unnecessary. Necessary operating cost are meals, utilities and gas and an example of unnecessary are entertainment operating cost, expensive phone plans and unsecured debt. Household operating cost 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 Wages:
The proof of income is usually a paycheck stub, a P&L Profit and Loss Report if self employed, or checking account statement showing paycheck deposits. The proof of income is required to prove the mortgagor has steady income. The mortgagor must also give frequency of income. The proof of income must correspond with the income shown on the financial statement. Resolve any discrepancies

Article Source: http://blisspublisher.com

Donald Morris the owner of Stop Foreclosure. There is more information about loss mitigation at Help Stop Foreclosure. Also read our blog about Loan Modification Help

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