More About Loan Modifications

If you are considering a Loan Modification, you do not have to pay someone to do it for you. All you have to do is call your bank and ask them if you are able to qualify for a loan modification. They will send you out a packet of information to fill out. In addition, they will request bank statements, financial statement, pay stubs and a hardship letter.

Be aware that if you have missed one or two payments, the bank will proceed with foreclosure proceedings. Once a Notice of Default has been filed (usually after 3 payments have been missed), a loan modification may not be an option anymore.

Whatever you decide to do, make sure you do it in a timely manner. Time is the biggest obstacle in your way when it comes to any type of negotiations regarding your home loan. There is only a small window of opportunity before there are no options left for you.

One last thing, the loan modification process is lengthy. It could take up to three months or longer before you have confirmation that a loan modification will work and that the bank will modify.