How to Start A Mortgage Loan Modification

Successfully modifying your current mortgage loan can mean the difference between home ownership and foreclosure. If you are one of the thousands of homeowners who are hoping to modify your current loan and retain your home, here are the basic steps to get you started.

Instructions

1. Contact your lender and ask to speak with someone in the loss mitigation department.

2. Note the name and title of your contact in the loss mitigation department. Explain your reason for calling, including as much detail as possible about the circumstances that compel you to seek a loan modification.

3. Answer as accurately and concisely as possible all questions that the loss mitigation representative asks.

4. Await the arrival of an information packet in the mail. Complete the application, carefully following instructions. Prepare a hardship letter for inclusion with your application.

5. Submit the application and all supporting documentation requested by the loss mitigation department.

Tips & Warnings

• Keep a journal to record every communication you have with the mortgage company.

• Not all that apply for a loan modification will qualify.

References

• HUD.gov: Loan Modification Frequently Asked Questions