Dubiln Packard

loan modification

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Why Should I Act Fast In Applying For A Loan Modification?

loan modification act fastDon’t Wait! Why Should I Act Fast In Applying For A Loan Modification?

A fundamental mistake most people make is not to apply for a loan modification as quickly as possible.  You must act fast  in applying for a loan modification to save your home.  It becomes apparent when you understand how a loan modification works. A loan modification takes your missed payments and rolls them into your future payments; then you arrive at a new monthly payment, which is usually lower than the original amount because the loan typically has a lower interest rate and a longer term. The more missed payments, the harder it is to be approved.

You probably know that it takes many months in New Jersey for the foreclosure process to progress from Complaint to Sheriff Sale, but don’t let this time-frame let you think you can wait to apply.  Don’t Wait!

If you want to find out the 2 biggest pitfalls when trying to get a loan modification, read our post: Two Biggest Reasons People Fail To Get A Loan Modification.

So Why Should I Act Fast?

A loan modification is the best option for those looking to save their homes, it gives you the best outcome. But, the longer you wait, the more mortgage payments you miss. As a result, when your application is analyzed, the more payments you have missed makes the new monthly payments higher, and this makes it harder to be approved.

Loan modifications can take a long time to begin with, to increase your chances of getting approved for one, it is smart to get started on the process ASAP if you think you may qualify.

To find out if you qualify for a loan modification, read our post: Will I Qualify For Loan Modification?

And, if you think you qualify and want to know how loan modifications work, read our post: How To Get A Loan Modification. 

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Why Are Loan Modifications Frustrating?

Home loan modification frustratingIs Your Lender Constantly Giving You The Runaround…Why Are Loan Modifications Frustrating?

There are a million and one reasons why getting a loan modification can be the most frustrating endeavor ever. We hear it constantly, “I keep sending my documents into the bank over and over again and they tell me they lost them, ask for the same document over and over, and then ask for additional documents. Then, I get denied and they won’t tell me why.”

The unfortunate truth of the matter is the loan specialists you work with idon’thave any authority and you hardly ever speak to the same person twice, leading to confusion and misunderstanding.  There are a lot of different processes going on in the background when you send your documents in to the bank, it can be frustrating to understand why your application keeps getting denied, or why the process is taking so long.

Common Complaints About Getting A Loan Modification

  1. Your bank won’t stop pestering you for the same documents repeatedly
  2. You keep faxing the bank the same documents
  3. You reach a different agent every time
  4. The agents all tell you conflicting information
  5. You’re spending hours on hold, to get nowhere
  6. Your lender isn’t responding to you
  7. Your application was denied, even though you qualify
  8. The bank lost your documents
  9. Your bank keeps transferring you between different departments every time you call

End The Struggle – Get Your Loan Modification

There are basic things you must know in order to have a good shot at getting your home loan modification application approved. To discover how to get a loan modification, read our post: How To Get A Loan Modification.

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Will I Qualify For a Loan Modification

will i qualify for a loan modificationYou Want To Qualify For A Loan Modification: How Will You Know If You Qualify?

To Qualify for a loan modification can be frustrating but wouldn’t it be helpful to know if you qualify right now?  There is a simple rule of thumb that you can use.  Compare your income to your new estimated monthly payment after a loan modification.  This will let you know if the bank thinks you can afford the monthly payments.

How Do You Know If You Can Afford The Monthly Payments?

To know whether or not you can afford the monthly payments, you must pass an income test. You must have the correct ratio of income to mortgage payments.

If you cannot pass the income test, and cannot afford the monthly payments, the only thing you can do to fix this is by adjusting your income.

 

How Can I Increase My Income To Qualify For A Loan Modification?

  1. Look for a second job to supplement your income.
  2. Rent out a room in your house.
  3. Encourage your kids to contribute to the household.

For More Information About Loan Modifications, See My Complete Article:

Read our post: How To Get A Loan Modification. 

Good Luck!

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Two Biggest Reasons People Fail To Get A Loan Modification

loan modification frustrationDid you fail to get a loan modification?  Here are the Two Biggest Reasons People Don’t Get Loan Modifications and how to avoid them.

Reason 1. The single biggest reason people fail to get a loan modification is: they don’t submit all of the documents requested. You must submit all of the documents requested.

Reason 2. The second biggest reason people fail to get a loan modification is: they’re not submitting the documents in a format that the bank accepts; they are very specific in the way that they require you to send in documents.

Don’t Fall Into The Trap.

 

Don’t want to fail to get a loan modification?  Don’t make these two mistakes.

We suggest you submit everything at one time and don’t leave anything out to submit later.  Also, when the bank advises you that something is missing or outdated, submit what they ask for right away – don’t wait.  This will save you an enormous amount of aggravation and frustration.  Most, if not all of the documents the bank is requesting must be the most up-to-date version of the document that is available.  If it is June and the bank asks for the 3 most recent bank statements, submit statements for April, May and June rather than March, April, and May.

For More Information.

To find out more about how to get a loan modification, read our post: How To Get A Loan Modification. 

Good Luck!

 

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How To Get A Loan Modification

How To Get A Loan ModificationTrying to get a loan modification can be very frustrating.

So many people we talk to tell us they have been trying for months to get a loan modification…only to get the runaround from their lender.

But First, What Is A Loan Modification?

A loan modification is changing the terms of your existing loan with your existing lender.  By the way, it is not a “re-modification.”  What terms?  First, if you are behind on your payments – we call those missed payments the “arrears” – you have to catch up.  In a loan modification, the arrears are added to the principal balance.  Then, you get a new – hopefully lower – interest rate and then the number of years is reset to zero and now you have a new 30 or 40 year loan with a new principal balance and a new internet rate.  Hopefully, all of that translates into a new monthly payment you can afford.

That last part is important.  “…you can afford.”  If you can’t afford to make the payments, you won’t qualify for a loan modification. If you want to find out if you qualify for a loan modification, read our post: Do I Qualify For A Home Loan Modification?

How Do You Know If You Can Afford The Monthly Payments?

There is a simple rule of thumb to help you know right away whether or not you will qualify for a loan modification.  Take your gross monthly income and multiply by 0.30.  That’s 30% of your monthly gross income.  That number is where your lender likes to see your monthly payment. If you are self-employed, there are special considerations. If you want to find out if you qualify for a loan modification if you’re self-employed, read our post: Will I Qualify For A Modification If I Am Self-Employed? 

If I Don’t Qualify, Where Can I Get More Income?

  1. Get a second job.
  2. Rent out a room.
  3. Get your kids to contribute.

Ok, I Think I Can Qualify.  Now What?

All of the banks use pretty much the same forms.  Go to your bank’s website and search for the form.  Or, you can contact your bank directly and have them send you the package of forms. Complete the forms and attach all of the documents requested by the bank.

The Biggest Reason People Don’t Get Loan Modifications.

The single biggest reason people don’t get a loan modification is: they don’t submit all of the documents requested.  You must submit all of the documents requested.

Be Patient:

It may take 3-6 months of calls, faxes, emails, letters etc. to get help before you get relief.

Good Luck!