Getting Through a Loan Modification
Anyone who's went through it knows that the mortgage loan modification process is trying, confounding, frustrating, hair-pulling, exasperating, and any other adjectives denoting reaching one's last nerve that can be added to this string of misery. The only good thing that can be said about it is that you'll eventually get to the end of it.
For that ending to be successful one has to have b_ lls of steel because you have to STOP PAYING YOUR MORTGAGE, otherwise the mortgage holder won't even consider a load modification (lowering of monthly payment or, the ultimate bonanza, a lowering of principle) if you're still able to stay current in your payments. I mentioned €steel€ in reference to body parts earlier, well, once you stop paying the monthly payment, that steeliness has to be applied to your nerves because you'll need it.
First you'll start getting phone calls from the bank that threaten foreclosure, closely followed by demand letters for the arrears. The calls don't let up, and neither do the threatening letters. If you have a modern TV and cable, you'll get a note on your screen as to who is calling. If it's the bank, don't answer. Let them leave a message.
Steady! You'll get through this.
Same thing goes with your phone -- you'll get a screen message as to who's calling.
After three months of this a decision has to be made. You either chose to respond to the bank yourself to declare hardship and ask for a loan modification, or you hire a lawyer to act as your agent in the process. The lawyer will also field all the phone calls and receive the mailing, once you instruct the bank to to direct all correspondence to your attorney.
If you can afford it, go the attorney route. The lawyer will have you assign him/her power of attorney to act on your behalf. You'll have to get it notarized and then you're in business.
The lawyer will then contact you with the bank's request for documents needed to review your request for a modification. They first will want a 3rd-Party Authorization form which your permission for your lawyer to act in your behalf.
Then the seemingly endless parade of document requests begins. This is a sampling:
. A hardship letter stating what happened and why you can't make your payments
. Fill out an 18 page expenses list accounting for all spending during the month
. 2 months of bank statements, including blank pages
After submitting all of that, the requests keep coming. They come back at you with more demands:
. Pay stubs, Retirement or Social secure checks from the last 30 days
. Self employed, Income: 3 months Profit and Loss statements and 3 months of Bank statements.
That submitted, you breath a sigh of relief, hoping that that's it. Ahhh... not quite. Next they want:
. List of all your house hold monthly expenses again
. SS Benefits Award letter if it applies.
. Annuity or investment income documented verification.
. If it's If it's for a rental, you'll need to show a utility bill with the tenant's name and the address of the property.
Finally you're done you think. Not quite. They've lost a bank statement so you have to dig that up and fax or scan all 5 or 6 pages, both sides. You get the feeling that they really don't want to do this, even though they've sent letters early on that they were ready to help.
Once all the documents are sent you wait, go about your business and wait some more -- up to 3 months. If you went with a lawyer you have a better chance, but you still have to wait and hope they come back to you with a significantly lower monthly payment. A good firm in Las Vegas is Cohen Johnson, Attorneys at Law (http://www.cohenjohnson.com)
Good luck.
For that ending to be successful one has to have b_ lls of steel because you have to STOP PAYING YOUR MORTGAGE, otherwise the mortgage holder won't even consider a load modification (lowering of monthly payment or, the ultimate bonanza, a lowering of principle) if you're still able to stay current in your payments. I mentioned €steel€ in reference to body parts earlier, well, once you stop paying the monthly payment, that steeliness has to be applied to your nerves because you'll need it.
First you'll start getting phone calls from the bank that threaten foreclosure, closely followed by demand letters for the arrears. The calls don't let up, and neither do the threatening letters. If you have a modern TV and cable, you'll get a note on your screen as to who is calling. If it's the bank, don't answer. Let them leave a message.
Steady! You'll get through this.
Same thing goes with your phone -- you'll get a screen message as to who's calling.
After three months of this a decision has to be made. You either chose to respond to the bank yourself to declare hardship and ask for a loan modification, or you hire a lawyer to act as your agent in the process. The lawyer will also field all the phone calls and receive the mailing, once you instruct the bank to to direct all correspondence to your attorney.
If you can afford it, go the attorney route. The lawyer will have you assign him/her power of attorney to act on your behalf. You'll have to get it notarized and then you're in business.
The lawyer will then contact you with the bank's request for documents needed to review your request for a modification. They first will want a 3rd-Party Authorization form which your permission for your lawyer to act in your behalf.
Then the seemingly endless parade of document requests begins. This is a sampling:
. A hardship letter stating what happened and why you can't make your payments
. Fill out an 18 page expenses list accounting for all spending during the month
. 2 months of bank statements, including blank pages
After submitting all of that, the requests keep coming. They come back at you with more demands:
. Pay stubs, Retirement or Social secure checks from the last 30 days
. Self employed, Income: 3 months Profit and Loss statements and 3 months of Bank statements.
That submitted, you breath a sigh of relief, hoping that that's it. Ahhh... not quite. Next they want:
. List of all your house hold monthly expenses again
. SS Benefits Award letter if it applies.
. Annuity or investment income documented verification.
. If it's If it's for a rental, you'll need to show a utility bill with the tenant's name and the address of the property.
Finally you're done you think. Not quite. They've lost a bank statement so you have to dig that up and fax or scan all 5 or 6 pages, both sides. You get the feeling that they really don't want to do this, even though they've sent letters early on that they were ready to help.
Once all the documents are sent you wait, go about your business and wait some more -- up to 3 months. If you went with a lawyer you have a better chance, but you still have to wait and hope they come back to you with a significantly lower monthly payment. A good firm in Las Vegas is Cohen Johnson, Attorneys at Law (http://www.cohenjohnson.com)
Good luck.
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