A Utah borrower who is not familiar with the loan modification process has a higher failure rate of obtaining a loan modification. To avoid making errors, a Utah borrower should research the process to find out as much as they can before asking their lender for a modification. It is also a good idea to speak with a Utah modification attorney.
Tips for Success
There are also some other tips you can follow to avoid getting turned down for a modification such as:
- Calculating your debt to income ratio first to see if you qualify for a modification. To determine this calculation, simply divide your house payment by your gross monthly income. If your new mortgage payment is 31% or less of your gross income, then you will probably qualify for a mortgage modification, providing you can document your financial hardship.
- Indicate how much you can pay.
- Be sure to find out from your lender what they need in order to approve the modification. Generally, lenders require the following financial information: bank statements, paycheck stubs, income tax returns, W-2’s or 1099’s. If you forget to submit any of this with your application, you will delay the process.
- Also find out the address and fax number of where to send your application and to what department. This way you avoid your documents getting lost and having to start the process all over again.
- Be clear in describing your financial hardship and when you expect the situation to improve. Acceptable financial hardships are generally loss of job, reduced wages, divorce, death in the family, illness or disability.
- Don’t forget to include your contact information and your attorney or other representative’s information.
- Include your social security number, your loan number and the address of the property. This avoids mix-ups with other borrowers with the same or similar names.
- Be sure to list all borrowers’ names and contact information.
Ask your lender questions so you don’t omit any information. Be sure you understand the process. It is recommended that you hire a mortgage modification attorney to assist you with the process as well. Having an attorney represent you increases your chances of success in obtaining your modification. Since you only get one opportunity to obtain a modification, you should get professional legal help to guide you through the process.
Use an Attorney
By using a modification attorney, you will save time and money and peace of mind knowing your interests are protected. The attorney can review your modification documents and negotiate the best terms for you.
