When meeting with the lender, the consumer must be do the following:

• Always be truthful to the lender
• Have complete copies of last two (2) federal tax returns including all W-2’s on all borrowers
• Have copy of most recent paystub for all borrowers on the transaction
• Have a copy of last two (2) months bank statements on all accounts and any stock/investment accounts
• If refinancing, have a copy of most recent mortgage statement
• If refinancing, bring copies of original documents in regard to mortgage
• Prepare a list of all assets, including names of banks, average balances along with a list of all liabilities, i.e., auto loans, credit cards, 2^nd home mortgages.  Note the lender can receive this information via a copy of your credit report.  But having the information available at the meeting is important.

At this meeting, the lender will be able to approximate, what your debt to income ratio. The final ratio is determined by credit underwriting. 

By having this information available, the lender should be able to discuss with the consumer various types of loan programs, which will meet the consumer’s financial position.  If you are a new home buyer, it is important that you have money available for a down payment. 

Today’s consumer is asking themselves, “How am I going to get out of debt?” The answer to that question is to consider a debt settlement program as a method to resolve their current financial situation. Consumers have not faced this type of financial climate since the Great Depression and in that situation; they were not overburden by unsecured credit card debt. Consumers are riding a roller coaster of emotions because of their financial situation. This along with the fact they are facing financial hardships because of a lost of job, reduced salary, divorce, death or medical emergency.

The consumer needs to select an experienced debt settlement company.  This company should be able to provide answers to all the consumer’s questions in a way that the consumer clearly understands how the program works.  The consumer should ask for the following:

• Upfront copy of all documents along with fee and cost schedules
• A company profile
• List of accreditations or afflictions, i.e., Better Business Bureau and associations

With any program, there are pros and cons when considering a course of action.  It is the consumers responsible to ask questions and do their research on the debt settlement company they select.

 The con’s are:

·         Tax ramifications – consumer will need to report any amount of forgiven debt that exceeds $600. This means an increase to your tax bill.

·         Credit score will drop

Some of the pro’s are:

• One single monthly payment
• Avoiding bankruptcy as an option. Always consult with an attorney about this step.
• Stopping collection calls
• Possible elimination of lawsuits and other legal action
• Stop any extra charges to the credit card

How Do I Qualify For A Loan Modification with Fannie Mae?

1.  You cannot get cash back of more than $2000.

2.  You can only redo a first mortgage.  You cannot pay off the balance of a 2nd mortgage.

3.  You cannot get a fannie mae loan mod with DU Refi Plus if you have an interest only loan.

4.  No refinancing of MyCommunityMortgages.

5.  No Balloon Mortgages.

6. No arms with fixed rate periods of less than 5 years.

Contact a mortgage loan officer to see if you can get a loan modification with the DU Refi Plus.

Citimortgage Loan Modification Requirements

You will need to provide Citi Mortgage specification information about your financial situation including pay stubs, tax returns, bank statements as well as a mortgage modification letter.  The mortgage modification letter will inform the bank as to the circumstances that got you in a position to ask for a loan modification.  If you have not income or make too much money, don’t be surprised if you are declined.  A mortgage modification is only for borrowers with legitimate hardships and are facing a foreclosure.  Just because the value of your home went down doesn’t mean that you will be eligible for a loan modification.  If you buy stock and the price goes down, you probably wouldn’t call your stock broker.  That is the same risk when you buy a home.  Owning a home does not guarantee you that you will have appreciation.

How Does H4H work?

If you are having problems meeting your monthly mortgage obligation, Hope for Homeowners may be able to assist you by refinancing your current mortgage into 30 or 40 year options to lower your monthly mortgage payment.

Do I Need Loan Modification Services?

Most lenders have their requirements to get a loan modification, you just need to see what the banks criteria is to get it.  Just call the number on your statement and ask to speak with the loss mitigation department.  The is the department that will give you the criteria to get your mortgage modified.

The process for getting qualified for a loan modification program is very simple, just call your lender first and see what the requirements are.

GMAC Mortgage 800-799-9750

Wells Fargo  800-678-7986

Citigroup, Citibank and Wachovia  866-272-4749

JP Morgan Chase, Chase, Wamu, Washington Mutual  866-550-5705

Countrywide  800-669-0102

M&I  877-473-4333 or 877-849-6160

If you are behind or know that you are going to get behind on your mortgage, don’t wait until it is too late.  The sooner you start the more likely you will end up with a favorable result.  Save your home from foreclosure and make the call today.  You home is worth saving and loan modifications do work.  You do not need to pay someone to do a loan modification, you can do it yourself.  Use this information to save your home.

How Do I Get Started On A Loan Modification?

If you are in trouble with your mortgage don’t wait.  Call your bank as soon as you can to see if they will do a loan modification for you.  You must have an income.  You need to be able to demonstrate that you will be able to even afford the new payment.  If not they wont work with you and you will probably end up in foreclosure if you can’t get the property sold.

Who Can Do A Loan Modification And Get Paid?

You can theoretically do your own loan modification. You just need to call the loss mitigation company for the company that holds the note on your mortgage loan. They can instruct you as to what you will need to be eligible for a loan modification.

How Do You Apply For A Loan Modification?

Most lenders have criteria for modifying mortgages right now. Just call and see what you will need. Most lenders are going to require that you provide your most recent pay stubs, bank account information and the last two years of federal income tax returns. Most banks aren’t just going to take your word for it that you need a loan modification. They are going to want to see that you will be able to handle the new payment or if there really is a hardship.  Most lenders wont consider you for a loan modification unless you are a few payments behind.  If you are current forget it. However new legislation may allow a bank to give you a loan modification even if you are current.  If you are in a loan that will reset and you can proove a future hardship, you may have a shot at getting new loan terms form your bank.