1. Money
You can opt-out at any time. Please refer to our privacy policy for contact information.

Mortgage Modifications

Tips for Mortgage Modification

By

The previous page covered the basics of loan modification programs. Here's what you need to know about requesting a mortgage modification.

Tips for Asking

To make the process smoother, be prepared when you request a mortgage modification. The bank will want evidence that you cannot make payments. Gather the following items:

  • Monthly income, and detail of where it comes from
  • Monthly expenses, broken down by category (mortgage, food, transportation, etc)
  • Paystubs
  • Bank statements
  • Loan statements and agreements
If you present a snapshot of your financial situation, the bank can make a decision on your mortgage modification more easily.

How Long Does it Take?

You should expect to spend several hours of your time requesting a mortgage modification. You’ll wait on hold when you call, you’ll have to present your case, and you’ll have to hunt down documents and forward them to the bank. This is no small task.

After you request a mortgage modification, you should expect to wait several weeks before the bank actually does anything. During that time, do what the bank tells you - for example, they might say that you have to continue making payments to qualify for the mortgage modification.

Mortgage Modification Helpers

Plenty of businesses want to help you request a mortgage modification. The price you pay for their services is steep - often as much as a monthly mortgage payment. You don’t need anybody to help you request a mortgage modification (your bank makes a decision based on your financial situation, not who is asking).

Furthermore, you’ll have to provide the same information to the helper as you will to the bank. Just call your bank first and ask what you need to do for a mortgage modification. If you want to pay somebody for their time and guidance, that’s fine - just be aware that you don’t have to.

  1. About.com
  2. Money
  3. Banking / Loans
  4. Loans
  5. Mortgage Modifications - What is a Mortgage Modification? Definition and Tips

©2014 About.com. All rights reserved.