Tips to Get The Best Home Loan Modification Deal

Start early.
In the past, only people who were seriously delinquent or already foreclosure could get home loan modifications. However, lenders have become more lenient as government support gave them more incentive to modify loans. Starting early shows the lender that you’re responsible and determined enough to keep your mortgage on track.

Get professional help.
You may be tempted to handle the loan modification on your own to save money, but getting help from the pros can give you a serious advantage. A loan modification attorney or representative can get you in touch with the right department, help you gather the right documents, and plan your application according to your lender’s policies.

Do your research.
Most loans today are either owned by one bank or shared by many as mortgage-backed securities. Generally, sliced-up loans are harder to modify because there’s more than one entity with an interest on the loan. Find out who owns your loan by calling your lender or checking government sites like Fannie Mae or Freddie Mac.

Provide accurate information.
One of the first requirements for a home loan modification program is a hardship letter. Here, you explain why you fell behind and how you plan to get back on your feet. Lenders will need to verify all your claims, so don’t try to embellish your story. As much as possible, back it up with documents such as pay stubs, tax forms, and bank statements.

Set realistic goals.
Many lenders will offer new terms that are only slightly better than your current one. Don’t settle for a less-than-ideal deal out of desperation. A good loan modification attorney can help you negotiate more effectively and get a home loan modification program that makes financial sense for both you and your bank.