In order to qualify for a home loan modification, there is a process you must go through. No matter whether you have a mortgage with ASC, Saxon, Wells Fargo, Bank of America, or Citigroup, there will be a loan modification process that you must go through. It all starts with a simple phone call to your lender requesting information about bare loan modification process and packages.
Part of the loan modification process is to write a hardship letter for a loan modification. The hardship letter does not have to be anything very specific and detailed, but you need to explain your situation and why you are requesting a loan modification.
The hardship letter can include detailed explanations of a recent reduction in income, loss of job, injury on the job that has resulted in you not working, or any other legitimate reason you feel that you qualify for a loan modification. Your hardship letter for loan modifications should precisely explain to your lender why you cannot afford your current payment. Some people tried to apply for loan modifications just to see if they qualify. This is not a problem at all, as many people have gotten loan modifications that did not have a reduction in income or loss of job. Writing your hardship letter for loan modifications can be difficult if you do not have a loss of income. Your loan modification process can also take longer if you do not provide a good hardship letter for loan modifications.
You should expect your loan modification process to last anywhere between 30 to 120 days. Many companies such as Bank of America, Wells Fargo, and Citigroup have dedicated groups of employees that strictly work on the loan modification process for their customers. They help explain about all the details, even including the hardship letters for loan modifications.
You will be required to submit proof of income, fill out a loan modification package, fill out your hardship letter for your loan modification, give recent tax returns, provide any proof of unemployment income, submit copies of your bank statements, submit copies of your stock portfolio, and finally submit copies of your 401(k) account. The loan modification process requires a lot of details, including your hardship letter for the loan modification.
You will either be approved or denied for the loan modification after the process is complete. A good hardship letter for your loan modification will definitely help speed along the process and get you approved quickly. Many companies are reducing your monthly payment to reflect a maximum of 38% of your gross wages. This means that 38% of your gross income should be the maximum you pay for your mortgage, including principal, interest, taxes, and insurance each month.
Make sure you work with your lender throughout the entire loan modification process and give them all information they require. Make sure your hardship letter for loan modifications are detailed and give what requested information your lender, such as Wells Fargo or Citigroup, required in their hardship letter. Make sure you over communicate with your lender and take good notes about each conversation that you have had during your loan modification process.