You can take some of the frustration and confusion out of submitting your do it yourself loan modification by following these 7 important tips.  If you are one of the close to 2 million homeowners facing financial hardship due to unaffordable home loan payments, a loan modification could be the solution you are looking for.  Your lender may agree to modify your existing loan into one that features a lower interest rate, a longer loan term, includes missed payments and fees, and sometimes principal forbearance-all designed to give you the payment you can afford so you can stay in your home.

Unfortunately, not all borrowers will qualify, but you can increase your chances of success if you learn some basic information before you submit your do it yourself loan modification to your lender.   Here are 7 important tips that can help you to prepare an acceptable loan modification application:

1. Pull out all of your current bills and monthly obligations, sit down and put together a reasonable family budget that you can maintain.  Determine what your ideal “target” mortgage payment would be-what can you afford to pay now and in the future?
2. Now that you know your target payment, verify that your total monthly housing expense-principle and interest, taxes and insurance do not equal more than 38%-41% of your gross monthly income.  Simply divide your total monthly housing expense by your households gross (before deductions) monthly income to determine the percentage.  Adjust the payment as necessary to meet this guideline.
3. Compose a hardship letter to explain to your bank the circumstances that caused you to fall behind, tell them what actions you have taken to correct the situation, and assure them of your intentions to make homeownership your top priority.
4. Back up your story by providing proof of the hardship, for example medical bills or a letter from your employer about layoffs, reduced hours, etc.  This will further your credibility with our lender and help convince them to help you.
5. 5.  Prepare your financial statements accurately.  The lender will verify the information you provide against a recent credit report and your bank statements.  Any undisclosed income or debts could disqualify you.  Eliminate any unnecessary expenses from your financial statement-The Complete Loan Modification Guide provides you with two financial statements-one Current that demonstrates the unaffordability of the current mortgage payment, and a Proposed financial statement that shows your new budget, lower mortgage payment and with approximately $250 left over each month for disposable income
6. Include proof of your income, current bank statements and tax returns for self employed borrowers. BONUS TIP: having large, untapped reserves may indicate that you are not in a financial hardship situation
7. Verify that all of the forms are completely neatly and accurately, then put it all together in a professional Do it yourself loan modification package-you can follow the easy checklist included in The Complete Loan Modification Guide to make sure you are presenting an complete application to your lender. 

When you take the time to learn and prepare before submitting your Do it Yourself Loan Modification to your bank, you will increase your chances of success.  Understanding what your lender is looking for to approve you loan modification application will allow you to prepare the paperwork properly so that you are presenting your situation in the best possible light.  Once you have the knowledge and resources to help you put together a accurate and professional do it yourself loan modification, you will be on your way to secure home ownership again.

You can get the help you need to understand the do it yourself loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. 

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com