Loan Modification Application and Negotiation
Have you missed a few mortgage payments and are ready to get caught up with your bank? Are you in a situation where you can afford to resume regular mortgage payments but you can’t pay all the payments you missed at once?
A loan modification may be right for you.
A loan modification can be a permanent solution to a temporary hardship
When you are considering applying for a loan modification, you may want to consider getting some help. The earlier you can chat with someone about your particular situation, the better – an attorney can help you make a mortgage relief plan so you understand all your options and how a loan modification can help you.
There are times when it makes sense to apply, even if you know you might be denied. It could buy you more time in the house or it could allow you more time to improve your household income. Sometimes, you may want to apply just to know that you tried everything you could to save the home.
When we work together to try for a modification or repayment plan, here is what you can expect:
- You will receive a full financial review to ensure we submit things in a way that sets you up for the best shot at success: I collect and review your full financial package BEFORE I submit it to the bank. I help you understand how we should be presenting your income and expenses so that your debt to income ratios look good. If I see anything that may cause a problem, we discuss how to resolve the problem before anything is submitted. If you submitted your package on your own, I step in and see if we need to change anything. Sometimes, I suggest we start over if you submitted on your own and things need to be changed.
- All of your non-traditional income will be presented correctly: If you are self-employed, sell on Etsy, Facebook Marketplace, drive for Uber or DoorDash, are a commission based construction worker, are a bonus-based welder or truck driver, are a realtor who works solely on commission or any other type of income that is not standard W-2 income, this process is going to be hard for you to navigate on your own because the banks require unconventional income to be presented in a specific way.
- You’ll receive a pre-filled draft of your application for your review: I draft your application for you. I ensure that every box is checked and every line completed correctly so we get through the process quickly in the fastest amount of time.
- You’ll receive a draft of your hardship letter for you to review to ensure your hardship reason passes the bank’s criteria for validity: You’ll receive a professionally written hardship letter tailored to your situation. This letter directly addresses the bank’s needs and maximizes your application’s success.
- Full negotiation services with the bank until we have a decision: Once the application is submitted, I complete the negotiation with the bank so you don’t have to talk to them. My job is to be on the phone daily, in the trenches with the representatives, underwriters and supervisors making sure your file is moving forward.
- TPP management to ensure that your modification gets completed: Once approved, you are typically given a 3 month agreement. This is called a Trial Payment Plan (TPP). Your bank wants to test you for three months to see if you can make the payments. After your TPP, you have to get final documents FULLY EXECUTED in order for your modification to be done. Lots of things (service releases, notary problems, bank failures to apply your TPP, missing payments etc.) can happen between TPP and final modification documents so I ensure this process goes forward smoothly.
- Advice, drafting and submission of an appeal (if necessary): If an appeal is needed, I draft, submit and negotiate your appeal until we have a decision back.
- Advice, execution instructions and full support once you get your final modification documents: At the end of the trial period, I review your final modification documents and help you know how to execute them. I ensure the bank books your modification, removes the loan from default and cancels any foreclosure activity.
You can apply for a loan modification by yourself. However, the increased stress, the increased need to communicate with your lender, and the increased risk of failure make most people in your situation turn to a professional for assistance.
Most of my clients tell me that using a professional provided them peace of mind. It allowed them to turn their attention to other areas in their lives that need more attention.
I’ve worked with over 100 different lenders on loan modifications and repayment plans. If you’d like to chat about your situation, feel free to call me at (425) 654-1674.