DevelopingaCaseforLoanModification 2
Watchoutforscammers!
Unfortunately,thereare
crooksouttherelookingto
takeadvantageof
homeownerswhoneeda
modification.Callyour
servicerdirectlyfor
assistance.Ifyouarelooking
toanothercompanyforhelp,
checkthemoutwiththe
BetterBusinessBureauor
askalocalhousing
counselingagencyorlawyer
iftheyknowofthecompany
andifitdoeswhatit
promises.Also,youcanvisit
loanscamalert.orgfordetails
onhowtospotascammer
andseealistoftrusted
resources,plusinformation
onhowtoreportasuspected
loanscammer.
mortgage.Yourlettermustbeclearandto
thepoint,andlimitedtooneortwopages.
Thisletterisyourchancetoshowthatyou
are
aresponsibleindividual,butthatyouare
experiencinganunusualhardship.Explain
whyit’sinthelender’sbestinterestto
modifyyourloan.Alinktoasamplehardship
letterislistedattheendofthisfactsheet.
Prepareabudget.Setupanemergency
budgetforyourfamilythatwillgetyou
throughthisdifficulttime.Seethecrisis
budgetfactsheetforwaystodothis.
Lenderswillappreciatethatyou’vethought
thisthroughandhaveafinancialplan.
Whatdolenderswant?Remember,itcosts
lenderstoforecloseoncustomers.Theydo
notwanttoforeclose;they
wantyoutomakepayments
ontimeandstayinyour
home.Itisworththeirtime
toworkwithyoutomodify
yourloansoit’saffordable
toyouandsoyoucanstay
truetoyourdebtobligation.
Thelenderwillwanttosee
thatyouareemployedand
willingtomakepaymentson
time.
Qualifying.Yourlendermay
haveseveralmodification
programstochoosefrom,
andeachonewillhave
differenteligibility
guidelines.Herearesomeof
thecommonquestions
lenderswillask:
Isthehomeyour
primaryresidence?
Doyouhaveajob?
Howmuchdoyouowe
onyourhome?Doyou
owemorethanthehomeisworth?
Isthemonthlypaymentmorethan31%
ofyourmonthlyincome?(Usea
calculator:multiplyyourmonthlyincome
by0.31.Ifyourmortgagepaymentis
higherthanthatnumber,thenyouare
payingmorethan31%).
Areyoucurrentlymakingmortgage
paymentsontime?
Whendidyougetyourloan?Wasit
duringaperiodofhigh‐costlending?
Doyouhavemorethanoneloanonyour
property?Ifso,whatistheamount
owed,lenderandtermsofthatloan?
Whyareyouhavingdifficultymaking
payments?Wasthereanincreaseinyour
loanpayment?Hasyourincome
decreased?Doyouhaveahardshipthat
hasincreasedyour
expenses,suchasa
medicalproblem?
Considermeetingwitha
housingcounselor.A
counseloratanonprofit
housingcounselingagency
canhelpdetermineifa
modificationispossible.
Thesetrainedprofessionals
haveaccesstothe
informationyouneed,can
helpassembleyour
modificationmaterialsand
buildyourcase,andhelpyou
steerclearofscammers.
Housingcounselors
canalso
helpyouwithcrisis
budgeting,creditcounseling
andothermethodsof
avoidingforeclosure.There
areanumberofwaystofind
ahousingcounselor;please
seethereferencelistatthe
endofthisfactsheet.