There are various reasons why homeowners are trying to get a loan modification.    One of the main reasons is due to a job loss which becomes a financial hardship.   And the question is  ‘Can I do my own loan modification?’.  The answer is YES. If you, the homeowner, is willing to spend time on the phone and do some paperwork, then you can do it.

The first thing a homeowner should do is call their lender (mortgage company), request for the loss mitigation department and ask for a loan modification package.    This will let them know that you are willing to work with them on getting your loan back on track.   They will give you a list of items that they want.  These items can include proof of income, hardship letter which states why you can’t pay the current mortgage, bank statements, and so on.  Be honest and provide what they are asking for and let them know your situation.  The lenders do not want to hear sob stories but just the facts and a summary of your ability to repay your loan.

If the lender doesn’t respond quickly, be patient.  There is a process and many homeowners, like you,  have submitted their requests, too.   At the same time, keep detailed records of all your calls. Once contact is made, write down the name of the person with whom you spoke, his or her identification number, the date and time of your conversation and a summary of what was said. Also make copies of all your correspondence and other paperwork. Lenders tend to lose things.

Avoid SCAMS from companies who offer services to do your loan modification for a fee.  That is illegal.  Only pay for services rendered, if any.  The main thing is keep informed, keep pushing and stay in communication with your lenders.  Nothing will kill your chances of modifying your loan than not communicating your situation to them and waiting until the last  minute to work something out.

The Wall Street Journal

What home sellers don’t tell buyers
As buyers ease back into the battered real-estate market, they’re often hitting a stumbling block:  Fibbing by home sellers.  Buyers should do their own due diligence and not rely on agents and sellers.

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