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Step 1
One needs to keep pace with time to avoid foreclosure. One of the means, which can slowdown the process of foreclosure, is a home loan modification. However, initiation of a home loan modification in itself will not be a solution and you may lose other options in case you prefer to wait. There is bound to be delays in a home loan modification process, as most of the lenders do not have the requisite staff or adequate experience to handle the applications. The process might take months to materialize even if you were to seek the assistance of a shrewd attorney.
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Step 2
You need not wait for the process to take its own course. In order to speed up the process, you can initiate some simple steps from your side. These steps will yield positive results once the process gets underway for home loan modification.
1 Documentation is very essential in such circumstances. It is advisable that all things are recorded and kept in a file. The recordings should include the conversations with the lender and the attorney overseeing loan modification. Documenting will avoid unnecessary delays, as the small lenders may lose track of your application. All transactions should be recorded and receipts, if any, for those transactions should be kept correctly. I would advise that photocopies be taken of the original receipts.
2 You should prepare the requisite financial statements. A financial statement of your assets and liabilities is an essential aspect in a home loan modification. The lenders will be having their own format and ask you to fill up in that format. When you are asked to fill up in their format, you will have all the details from your statement, and there will not be any delay in filling up in the lender’s format.
3 You should give as much information as possible from your end, as lack of information or insufficient information should not delay the process. The lenders need not call you for any further information. The typical information that need to be provided in a worksheet should include :
• Details of current income as well as any additional income such as child support, welfare etc.
• Total assets you possess own – including real estate, investments, bank accounts – both saving and checking accounts, stocks, bonds etc.,
• Your total liabilities that includes monthly bills, tax liens, existing loans and medical expenses. -
Step 3
4. Keep all the supporting documents such as bills along with your financial statement. You may have to dig deep and collect all the required papers. In that way, the information you provide in the financial worksheet will have proof. By doing so, you are not allowing any chance for the lender to doubt your statements. The more details you provide, the better are the chances of your home loan modification going through at an early date.
It is very essential that you provide truthful disclosures and verifiable documentary evidence to the attorneys for them to put up your case to the lenders.
