Getting Your Mortgage Loan Modification Application Accepted

Getting Your Mortgage Loan Modification Application Accepted

If you want to handle the loan modification process yourself, you have to know what to do, but more importantly, what not to do! Let’s look at a few things you should never do when preparing your loan modification application.

Mistake: Trying to negotiate with the wrong person. You may get called at home by someone from the collections department about your unpaid mortgage bills. Don’t bother trying to talk with them about mortgage loan modification. These people are unable to help you and are just calling to get the money. You’re better off contacting the correct department of your lender, so you can speak with someone that can actually help you out.

Mistake: Not studying the mortgage loan modification process before starting your application. You have to make sure that you understand the necessary paperwork and that you know what to say and what not to say on a mortgage loan application form. If you don’t take the time to learn the ropes, there’s a big chance you will be denied mortgage loan modification.

Mistake: Omitting information when applying for mortgage loan modification. Be aware of the fact that the bank WILL check up on the facts you provide, so don’t be tempted to omit information or even lie. You will get caught and all your chances of getting a mortgage loan modification will go down the drain. Banks really don’t like it when you don’t tell the whole truth.

Mistake: Paying a big upfront fee to your mortgage loan modification company without checking their credentials. Because of the rise of foreclosures these days, there are a lot of mortgage loan modification companies rushing into the market. Some of these companies are not very qualified to handle your mortgage loan modification. You need to make sure that you’re dealing with a qualified, reputable company before paying them a dime. Mortgage loan modification should get you out of financial hardship, not deeper in the hole.

Mistake: Proposing a loan workout that does not meet the approval criteria of your lender. If you do this, the lender will conclude that you have not taken the time to do your homework. As a result, your application will be denied. Always read up on the approval criteria to give yourself the greatest chance of being accepted.

Your application will look good to a lender if you don’t make the mistakes we’ve outlined in this article. The final decision is up to the lender, but taking the time to do your mortgage loan modification right greatly increases your chances of being accepted.

Janette writes about financial matters and mortgages in plain English. She also writes Dutch articles about hypotheek oversluiten and aflossingsvrije hypotheek.