Homeowners can be successful with a do it yourself loan modification-but how do you get started to get the help you need?  The secret to getting your loan modification application approved is presenting your situation in a manner that is going to meet your lenders guidelines and fit within their loan modification programs.  Loan modification companies will tell a borrower that they will have better results if they pay a company to represent them, (of course-they are trying to get your business) but that is not always the case.  To be successful, the first step is to learn what it takes to qualify-it is pretty hard to qualify for something if you don’t even know the requirements!

Here is a brief outline of some of the most important aspects of an acceptable loan modification application:

Debt Ratio:  lenders will determine a new “target” payment that will represent an acceptable percentage of your gross monthly income.  For example, the new payment must be no more the say 38% of your gross monthly income.  So, if by a combination of interest rate reduction, longer loan term or principle forbearance you can reach that percentage, you are a good candidate for loan modification help.

Disposable income:  Your do it yourself loan modification application will include a financial statement.  This is a detailed breakdown of your income and expenses.  You must show that when you calculate your new lower loan payment, the rest of your bills and expenses against your monthly income, that you still have $200-300 left over.  That will assure the bank that your are not a risk for re-default if granted the loan modification.

Hardship Letter:  A convincing and compelling explanation of your circumstances and your plans for the future will help your lender understand how and why you are facing payment difficulties.  Not too wordy, but with documentation to back up what you say (medical bills for example), a good hardship letter is an important part of the do it yourself loan modification application.

A homeowner who takes the time to research, learn and prepare can be successful with a do it yourself loan modification.  Just like anything else, the more you know the better your chances are.  Many of the loan modification companies advertising that they can do it better are brand new at loss mitigation.  They don’t have the motivation to work as hard as you do-it is your home after all and you have the most to lose and the most to gain.  A loan modification company that gets paid up front puts your application in a big stack with all the others-while a homeowner who makes the commitment to fight for their home will not give up until they get the loan modification help they need and deserve.

Persistence is what is required-even if told no the first time-homeowners have been successful with do it yourself loan modifications by simply refusing to give up.  Lenders are debt collectors-they are putting their interest first-so borrowers have to learn to not take it personally and don’t give up until the goal is reached.  It might be a battle, but a knowledgeable and dedicated homeowner can win the good fight.

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