How to Represent a Homeowner for Loan Modification
- 1). Ask all homeowners who request your help in seeking a loan modification to explain to you why they can no longer afford their mortgage payments. Homeowners might have lost their jobs, had their annual incomes slashed, or suffered a serious injury or illness.
- 2). Help these homeowners prepare a written hardship letter. This letter will put in writing the reasons why the homeowners can't afford their monthly home loan payments. Instruct homeowners to include their request for a loan modification in their letter.
- 3). Determine how large of a mortgage payment homeowners can afford. Do this by studying their most recent paychecks, federal income tax return, savings and checking account statements, credit-card bills, and additional loan statements.
- 4). Instruct homeowners to make copies of their most recent federal income tax return, savings and checking account statements, credit-card bills, other loan statements and last two paychecks.
- 5). Tell homeowners to contact their mortgage lenders and request a loan modification. Remind these homeowners that they'll have to explain to their lenders the financial hardship that they've suffered and why it means they can no longer afford their mortgage payments.
- 6). Send the copies the homeowners made in Step 4 to their mortgage lenders. Their lenders will study these to determine if their financial hardship is serious enough to warrant a home loan modification.
- 7). Counsel homeowners on whether they should accept their lender's proposed solution. A lender may offer to reduce the principal balance on a homeowner's loan, lower its interest rate or restructure its terms, all of which will result in a lower monthly statement. Advise homeowners to accept an offer if it does result in a monthly payment that they can afford.