Many people try to handle the mortgage loan modification process themselves. If you decide to go the DIY route with a mortgage loan modification, you have to know what things you should do, but even more importantly, what things you should NOT do! In this article, we’ll go over a few mistakes that are often made in a loan modification application. Avoid these mistakes to increase your chances of getting accepted.
Mistake: Speaking with the wrong department about a mortgage loan modification. When you miss a mortgage payment, you’ll eventually get a call from your lender’s collections department. Don’t try and negotiate a mortgage loan modification proposal with these people on the phone, because they can’t help you. They have only one goal, and that is to get a mortgage payment from you. Not help you with your financial trouble. Speak with the correct department of your lender if you want to negotiate a mortgage loan modification.
Mistake: Not studying the mortgage loan modification process before starting your application. You have to make sure that you understand the necessary paperwork and that you know what to say and what not to say on a mortgage loan application form. If you don’t take the time to learn the ropes, there’s a big chance you will be denied mortgage loan modification.
Mistake: Not being completely truthful on your application form. This will get you in trouble. Many people fail to realize that a lender WILL check up on the facts provided on a mortgage loan modification application. If you get caught, you will immediately lose all chances of getting your mortgage loan modification accepted.
Mistake: Paying a big upfront fee to your mortgage loan modification company without checking their credentials. Because of the rise of foreclosures these days, there are a lot of mortgage loan modification companies rushing into the market. Some of these companies are not very qualified to handle your mortgage loan modification. You need to make sure that you’re dealing with a qualified, reputable company before paying them a dime. Mortgage loan modification should get you out of financial hardship, not deeper in the hole.
Mistake: Proposing a loan workout that does not meet the approval criteria of your lender. If you do this, the lender will conclude that you have not taken the time to do your homework. As a result, your application will be denied. Always read up on the approval criteria to give yourself the greatest chance of being accepted.
If you make sure you don’t make these mistakes when applying for a mortgage loan modification, you give yourself the greatest chance of succeeding. The final decision is up to your lender, but if you take the time to do this right, you make it easy for the lender.
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