Loan Modification Negotiations

When negotiating with your mortgage company/servicer on a loan modification or loan workout to prevent foreclosure, be honest about your financial situation so the negotiator or third party can find the best solution for you and your family. You will be asked to supply documentation proving the stated facts to be true. After calling and advising your servicer of your hardship, you will need to continue to call, fax and email in an effort not to get lost in their loss mitigation department. The mortgage company/servicer will want to see at least the following for qualification of a loan modification or loan workout.

1. Current Paystubs
2. Tax Returns (if self-employed)
3. Two Months Current & Consecutive Bank Statements
4. Completed Household Budget or Financial Statement provided by servicer
5. Hardship Letter and any supporting documentation to substantiate the hardship.

If the servicer can clearly see there is no way the borrower can make the payment, they may entertain a short sale or deed in lieu. These two options have a smaller negative impact on your credit report.

Please note that if you have income sources living in the home and he/she/they are not on the loan, you CAN still utilize that income to qualify.

Communication is key in negotiations. If you simply don't have the time to work on your own loan modification, I would recommend calling an attorney sponsored loan modification firm such as Sequoia Consulting Group.