February 1, 2010
Get Ahead of the Slow Moving Loan-Mod Train
Job instability and cut salaries are causing most individuals hardship. Giving up traveling and shopping, cutting back on groceries and spending overall might help some get through these tough economic times. What do you do about finances that you do not have the same control over, such as your mortgage payment?
The Obama administration has introduced the Making Home Affordable Program for individuals to find some type of financial relief. There are different types of qualifications and if one mistake is made while submitting the paperwork required your file can be denied. Your lender should provide the guidelines to you, but if you misinterpret anything your chances of a modification will be altered.
If your interest, taxes, insurance and homeowners association is more than 31% of your gross household income, this will most likely qualify you for the program. Your total debt to income, cash flow and the equity you have in your property at it’s currently value are other determining factors in the mortgage modification process. Make sure your lender is offering the government program or if they have their own in house programs to help clients in their time of distress. About 80% of banks are offering programs; you must call to find out.
A package will be sent to the individual who would like to modify their loan. This package will include a list of required documents such as your most recent mortgage statement, two consecutive checking-account statements, latest tax return, list of your expenses, utility bills and a hardship letter. Timely and accurate submission of all of these documents is crucial to your case. What is unfortunate is banks are constantly requesting the same documents numerous amounts of time because they claim that “they have not yet received it” or “they lost it”. Constantly following up with them and keeping records of documents is the only way to assure that your file is being worked on.
Legal Debt Solutions has highly qualified individuals who know what banks are looking for and work in a timely manner to make sure documents are received and your file is being actively reviewed by a case negotiator. In case of any misconduct by the lender, attorneys are prepared to make sure you receive the highest level of attention and all governmental guidelines have been considered for the client’s individual situation.
The Obama administration has introduced the Making Home Affordable Program for individuals to find some type of financial relief. There are different types of qualifications and if one mistake is made while submitting the paperwork required your file can be denied. Your lender should provide the guidelines to you, but if you misinterpret anything your chances of a modification will be altered.
If your interest, taxes, insurance and homeowners association is more than 31% of your gross household income, this will most likely qualify you for the program. Your total debt to income, cash flow and the equity you have in your property at it’s currently value are other determining factors in the mortgage modification process. Make sure your lender is offering the government program or if they have their own in house programs to help clients in their time of distress. About 80% of banks are offering programs; you must call to find out.
A package will be sent to the individual who would like to modify their loan. This package will include a list of required documents such as your most recent mortgage statement, two consecutive checking-account statements, latest tax return, list of your expenses, utility bills and a hardship letter. Timely and accurate submission of all of these documents is crucial to your case. What is unfortunate is banks are constantly requesting the same documents numerous amounts of time because they claim that “they have not yet received it” or “they lost it”. Constantly following up with them and keeping records of documents is the only way to assure that your file is being worked on.
Legal Debt Solutions has highly qualified individuals who know what banks are looking for and work in a timely manner to make sure documents are received and your file is being actively reviewed by a case negotiator. In case of any misconduct by the lender, attorneys are prepared to make sure you receive the highest level of attention and all governmental guidelines have been considered for the client’s individual situation.
