| You've hit hard times recently. And now, you've finally | | | | when you apply for a loan. |
| made up your mind to apply for a loan modification to | | | | - A proof of homeowners' insurance (if escrow |
| help save your home. However, this process can be | | | | payments for homeowner's insurance are not shown |
| quite complicated, so getting organized is important to | | | | on your mortgage statement). Ask your insurance |
| make sure you are doing things right. | | | | agent about it. |
| When organizing what you need to present to your | | | | - Your current financial statement financial worksheet |
| attorney or lender, think documents. Documents are | | | | that specifies your monthly income and expenses. It |
| the essential tool that they'll use to assess your | | | | also shows how much you are coming up short each |
| qualifications, and your chances of getting that | | | | month with the current house payment. |
| approval will depend on how well you present them. | | | | - Projected financial statement detailing any |
| Most of these documents are commonly asked by | | | | modifications to your monthly income and expenses |
| lenders during the initial stages of negotiation. Use this | | | | and the payment amount you will be able to afford if |
| list to help you get started. | | | | you are approved. |
| - A Hardship letter. This is a short letter giving a | | | | - A copy of letters from credit counselors that |
| detailed description of the situation you are in and the | | | | demonstrate your commitment to straighten up your |
| reasons why you can't pay your current loan. | | | | finances and the steps you are taking to achieve that |
| - A copy of your federal income tax returns for the | | | | goal. |
| past two years | | | | - A cover letter or form explaining why you're |
| - A copy of your W-2 forms for the past two years. | | | | submitting all these documents and giving a list of all |
| - A Copy of your bank statements for the past two | | | | the documents included in the package. Also make |
| months (The lender is less likely to grant you a loan | | | | sure the cover letter includes your name and account |
| modification based on hardship if you have a lot of | | | | number. |
| money in the bank) | | | | Also, make sure you have signed all documents that |
| - A copy of your pay stubs showing your income | | | | require signatures before you submit your application. |
| from your job for the past two months. | | | | Your spouse may also be required, assuming his or |
| - A copy of your most recent mortgage statement. | | | | her name is on the original mortgage. You may also |
| - A copy of your most recent property tax statement | | | | want to include your loan number on copies of all |
| (if escrow payments for property taxes are not given | | | | documents in the package. |
| on your mortgage statement). | | | | Remember that you only have one chance to get that |
| - Valid copies of documents that support your hardship | | | | approval, so make sure that you follow instructions |
| claims, such as a pink slip from your work, divorce | | | | carefully and include the specific documents that your |
| papers, hospital bills, death certificate, etc. | | | | lender requires you to submit. This process might not |
| - Borrower information sheet / Financial Worksheet | | | | be easy, but it will assure you a better chance of |
| that shows your income and assets. This is also similar | | | | getting your loan modification. |
| to the Uniform Residential Loan Application - 1003 | | | | |