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Loan Modification Package

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					EZ Loan MOD
Step by Step Process On Obtaining A Loan Modification On Your Own

Step 1 The first step to obtaining a loan modification is to get organized and get all the paperwork you need in front of you so that the task at hand will be quick and easy to do.

Things you’ll need
 Paystubs  W2’s for last two years  Current bank statement and other asset information such as 401(k) or other retirement plans  The last mortgage statement you received  Copy of your tax bill  Copy of your insurance bill

Once you have the above information in front of you your ready to start. Step 2 Fill out the financial form that has been attached (see below) Steps for Filling out Financial Statement  Make sure the information is as accurate as possible  The bank is going to want your net income earning so we have also attached a formula sheet to calculate that (See below)  Make sure to list your all your expenses to the best of your knowledge (don’t overstate expenses)

Financial Statement
Date Prepared Property Address Mailing Address (if different): Borrower's Name: Borrower's Employer: Co borrower’s Name: Co borrower's Employer: Number of Dependents: Loan Number

MONTHLY INCOMES:
Borrower's monthly NET income: Co borrower’s monthly NET income: Other Income: Total income: MONTHLY EXPENSES: Mortgage Payment 2nd Mortgage Payment Alimony/Child Support Home Phone Electricity Food Auto Loan Payment Auto Insurance Auto Maintenance Life Insurance Union Dues Homeowner ASS. Dues Education, Tuition Books *Homeowners Insurance Child Care Medical /Dental bills Cell Phone/ Pager Gas/Heating Trash/Sewer Clothing water Transportation/Gasoline Cable/Internet Church/Club Entertainment Home Maintenance Others(Credit Carts, Etc) * Property Taxes Total Expenses

* If Not included in Mortgage Payment

Mortgagor's Signature

Date

Co-Mortgagor's Signature

Date

Monthly Income Worksheet
If you get paid weekly Salary Net income

x52 total /12 total Monthly Net Income

If you get every two weeks Net income

x26 total /12 total Monthly Net Income

If you get twice a month Net income

x24 total /12 total Monthly Net Income

If you get paid once a month your net income is your Monthly Net income

Step 3 Once you have the financial statement filled out, check the following:  If your expenses are higher than your net income, chances are you won’t be approved for the loan modification. (I know, your asking yourself “why not”? Well if your expenses are more than you can afford, the bank looks at it as your not going to be able to keep up with a new payment plan so why offer one) So if your expenses are more than your income you have to do one of two things find more income:  Renters in your home, family members that help with bills, etc. All of it helps so make sure you list all of it.  The other thing is to have fewer expenses (I’m not telling you to just erase an expense. Look at what you can cut back on and do it. It’s an important step to keeping your home and your financial future.

Step 4 (One of the hardest to do. I know I’ve been there)
Call your bank and ask for the “Loss Mitigation Department” or “Home Retention Team” When you get someone on the phone (it might take a while so make sure you set at least an hour aside to do this) the first thing you want to tell them is that you are interested in getting a loan modification. They may or may not do phone interview with you on the phone. If they do there going to get a verbal financial statement (this is why we filled one out ahead of time, worst thing is finally get someone on the phone and not be ready). The next thing you will want to ask them is where to send all of your documents (we have prepared a fax cover sheet for you as well see below )

Write FAX Number here___________________

__________________________ __________________________ __________________________

Fax
To: From:

Loss Mitigation or Home Retention
Fax: Pages:

Phone:

Date:

Re:

Loan #

cc:

 Urgent

 For Review

 Please Comment

 Please Reply

 Please Recycle

 Comments:

I have included the following

o Financial Statement o Hardship Letter o W2’s or Tax Returns o Bank Statement(Asset Information) o Copy of Tax Bill o Copy of Insurance Bill

Step 5 You need a hardship letter now. Tell them why your in the situation your in now. Any reason is a good reason

We have attached a form as well to create your letter

Just let them know how you got to be in your situation

To whom it may concern: _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________

Sincerely,

Step 6 Final Step  Send out the packet to your lender  Key importance - for a lot of lenders, it’s a slow process. It may take up to 3 months to get a resolution  Don’t panic! After you send the package wait 3 days - call and confirm they have received your package  As long as they have received your package, if you are in the foreclosure process, they will postpone it (make sure to request the postponement if you are less than 3 months from a sale date)  MAKE SURE TO FOLLOW UP WITH YOUR LENDER ONCE A MONTH UNTILL A RESOLUTION IS FOUND

KEEP A LOG SHEET

CALLED

__________________

SPOKE TO ______________________ CALLED __________________

SPOKE TO ______________________ CALLED __________________

SPOKE TO ______________________ CALLED __________________

SPOKE TO ______________________ CALLED __________________

SPOKE TO ______________________ CALLED __________________

SPOKE TO ______________________

YOU ARE NOW ON YOUR WAY TO SAVING YOUR HOME AND OBTAINING A STABLE FINANCIAL FUTURE!!!!!!!!!!!!!

If you are unable to obtain results with this packet, we offer full service loan modification help for a fee.

Call or email if you have any questions

Contact info

info@realestate4free.com Office 630.340.5231 Ask for Joel