If you’re facing foreclosure then you have probably considered a loan modification or bankruptcy. First off, it’s important that every debtor be fully prepared when applying for a loan modification and that they mentally and financial prepare themselves for the possibility of not winning the mortgage modification. What this means is that if you find that your loan modification process is taking too long and that foreclosure seem imminent, then you should probably seriously consider bankruptcy. With that said, below are a few things you need to do when applying for a mortgage modification:
- Find out who the loan servicer is for your mortgage. Remember, this recession has witnessed residential mortgages change hands several times. With banks buying other banks and some going out of business, your mortgage servicer today may not be the mortgage servicer you had when you first received your home mortgage.
- Gather up the information that the mortgage servicer will need. You will need to provide the loan number, statements and any past due notices you have received for all of your mortgages. So if you have a second mortgage, you need to gather information on that mortgage too in your effort to apply for a mortgage modification and stop the foreclosure. You will also need to provide proof of income and provide detailed information on the other debts and expenses you are facing which in effect are contributing to your foreclosure crisis. Also, write out a detailed explanation of why you are facing foreclosure and why you need a mortgage modification.
- Before sending off a copy of the information requested by your mortgage servicer, make a copy of everything. Mortgage servicers are infamous for losing the documentation of homeowners fighting to save their home from foreclosure. Also, keep track of how long it is taking to get approval for a mortgage modification and keep on top of whether or not they are moving forward on the foreclosure. Many homeowners have been unpleasantly surprised by mortgage servicers who have foreclosed on their homes while they were still waiting on a mortgage modification approval.