Loan Modification

[howdidithappen]

If one tried to get a loan modification with their mortgage holder, what documentation will they need?

[Overmylimit]

Usually you can call your lender and ask for the loss mitigation dept; then ask them for financial workout documents. They will either email them to you or fax. You fill them out and send them back, then call to follow up every week until you hear what they can do for you. They basically want to see your monthly expenses and your income along with paystubs and bank statements. Do you have a 1st and a 2nd?

[howdidithappen]

Yes I have a first and second (80/10) with the same bank

[Flamingo]

Note - you have to be behind on your payments by at least 3 or more months before they will even work with you and you have to prove you will be able to pay any modification that they may work out for you. As you can imagine, it is not going well for many people due to all the job losses.

[Overmylimit]

I usually agree with Flamingo 100% however I am in the middle of 2 modifications right now with GMAC and SLS both were started when I was 2 days late on my 2nd payment due. Now as to whether they will only modify once your loan goes 3 months out that remains to be seen. but I am hovering at two and they said they would have an answer within a few days.

[r.m]

Note - you have to be behind on your payments by at least 3 or more months before they will even work with you...

Correction: Fannie Mae just instructed servicers that they can modify loans that are current. I don't know what Freddie Mac's position is, but they generally follow suit. That covers a healthy number of the mortgages out there.

[Dollar Bill]

What are folks typically asking for in a loan mod?
Lower Interest? Reduction of principle balance?

Starting from scratch with being several motnhs behind?