How to Get a Loan Modification Approved By Countrywide

With unemployment rates rising and many American families feeling the crunch from income loss and reduction, many people find it difficult to pay their mortgage on time each month. Some seek a loan modification in lieu of refinance or foreclosure. However, this can be more difficult than one might anticipate due to the amount of requests that banks like Countrywide receive on a daily basis. Here is an in-depth guide on how to get a loan modification approved by Countrywide home loans.

Things You'll Need

• Budget
• Hardship letter

Instructions

1. Call Countrywide and ask to speak with a representative in the loss mitigation department. Once connected, inform them about your situation and ask about receiving a loan modification. They will then ask you a series of questions about your ability to repay your mortgage in future months as well as get caught up on your arrears. They will then mail you a packet you will need to complete and send back to them as quickly as possible.

2. Fill out the package completely when it arrives. Include in the packet your current personal and financial situation. Make sure to advise Countrywide if your difficulty in paying your mortgage is a result of sickness, divorce or job loss.

3. Complete a budget letter. This letter will include the amount you currently receive each month and what you have to spend each month. Be very careful with this information as it can determine whether or not Countrywide agrees to a loan modification. Do not include erroneous debt or paint a picture that you have more going out than coming in each month. Treat this like a loan approval. Be honest about your income, but don't disclose any additional credit card or installment payments--simply put in the basics: food, utilities, gas etc.

4. Write a hardship letter. This letter should include all of the information on why you have fallen behind, and it needs to be clear and concise. It should also include your willingness and ability to repay your arrears over a six-month time period. Do not make this letter more than one page in length.

5. Add supporting financial documentation to your packet. Items such as your last two months of pay stubs and bank statements will be needed to verify your loan modification arrangements. This should reflect what is on your budget letter. Once you have completed this information, send it to Countrywide for approval.

6. Continue paying a monthly amount you can afford to Countrywide while you are waiting for your approval of your loan modification. This will show that you are willing to make arrangements with Countrywide and want to keep and stay in your home. Expect your loan modification package to be scrutinized for two weeks to a month.

7. Wait at least a week after sending the packet to Countrywide. Call the loss mitigation department to inquire if they have received it and where your file is in the process. They will advise you of how long it will take for approval and advise you to continue making payments each month as mentioned in the previous step. They will also advise you at this point if additional documentation is required.

8. Look for a letter approving your loan modification within the allotted time frame that Countrywide provides. This package will provide you a payment solution and repayment plan. Once you have agreed to this and signed the necessary documentation it is very important that you adhere to the terms that the bank gives you or your loan modification arrangement could be revoked.

Tips & Warnings

• Be honest in your loan package, but remember, if you don't pay your mortgage it won't matter how many credit card companies you owe. Pay your mortgage first and everything else after.