Loan Modifications Frequently Asked Questions: Getting Started
The first thing most people want to know when getting a loan modification is what they will need to get one
. As they say, you have to be qualified before you can get anything. Luckily, getting a loan modification is not so scary when you have help.The first thing you will need to do is to get together your bills from at least the last month, though if you can get as much as a whole year's worth of records it would be great. Save check stubs, check bank records, and look around to gather as much information as you can about your spending habits. Put these aside in a special folder for later for proof of your bills. Do not forget to save your loan payments, insurance payments and other monthly payments as well as your daily living expenses! Every little bit helps the banks understand you more and helps you towards your goal.
The next thing you will need is proof of your income. W2 statements, tips made, any stocks that pay off money, and anything else you do that earns your family money will need to be collected. Make sure you have the amounts both before and after tax to make life simpler later. Keep this in its own folder as well.
From there go to a professional such as the good people at 1st Foreclosure Prevention with your papers for a consultation. Consultations are free with 1st Foreclosure Prevention and aren't as scary as they sound. In fact, all it means is that we look over all the papers you bring us and do some math to see if you could use a loan modification. That's all!
Typically the people who need loan modifications the most are those who are just barely making it. If you there is not much difference between how much you are making and how much your are spending each month, then a loan modification should be pretty easy to get. If you are in debt but not by too much a loan modification should still be pretty easy to get, too. However, if you are badly in debt and constantly missing payments, the banks may feel that a loan modification won't change much and may not want to work with you. Try hard not to miss payments or to get badly in debt if and you will have much better chances of having a loan modification!
Another thing that can change your chances of getting a loan modification is how much if left over at the end of the month. If you are doing too well the bank may not think you need a loan modification. Keeping good records that show that times are getting harder and harder for you will help banks see that you really do need the loan modification to keep out of debt.
Now you have gotten your consultation from good professionals like those at 1st Foreclosure Prevention, what is next? Please read Loan Modifications and You part three for the next steps.
by: 1stforeclosureprevention