Struggling borrowers needing help to lower their mortgage payments need to learn how to find and complete the required loan modification forms. Every lender requires a borrower to submit an application that includes the required loan modification forms. Why are some homeowners approved for a loan workout while others are denied? The secret is knowing how to prepare the application forms properly so that they will meet the lenders guidelines for approval.  The new federal program called HAMP features a standard formula to determine which borrowers are eligible, use this formula when preparing your forms and you will have the inside edge.

What are the required forms and where can you get them? Below is a list of the loan modification forms that most lenders will require to consider your application:

1. Borrowers Statement: This is an information sheet that includes the borrowers basic information, like name, address, social security number, dependent information, job history, etc.
2. Financial Statements: This is a snapshot of your current financial situation that itemizes all of your income and expenses each month. This is where you demonstrate to your lender that while the current mortgage payment is a hardship, the new lower modified loan payment will be affordable. Make sure you figure your debt ratio, target payment and disposable income correctly!
3. Hardship Letter: You must prove to your lender that you have or will suffer a financial hardship causing the current mortgage terms to be unaffordable. A compelling and convincing letter will help your lender to decide in your favor.  Keep it short but descriptive-one page is ideal.
4. Submission Cover Sheet: Use this form to tell your lender what new loan terms and mortgage payment you are requesting. When you prepare your target payment ahead of time, you will be able to negotiate with your lender to achieve the new payment that will be affordable and sustainable for your family.
5. Rental Schedule: Use this form if you have investment or rental properties to show the bank the monthly cash flow and equity position.

Federal Plan

The Financial Statements are really the single most important part of your application. Based on how you prepare this form, your lender will make a determination as to whether you qualify or not. That is why it is so important to work on this ahead of time-do not give your bank any information about your income or monthly bills until you have sat down and worked out your budget. The goal is to show the bank that the current payment is unaffordable and that you cannot make ends meet. But you most also be able to show them that you will be able to pay and maintain the new modified payment each month, and have a little bit of disposable income left over for emergencies. This is easy to do when you use a Current Financial Statement and a Proposed Financial Statement and when you have determined your target payment. Your target payment is your goal-make any necessary adjustments to other parts of your budget so that you prove clearly to the bank that you can afford the new, modified payment.  If you are not sure how to figure your debt ratio, target payment or the other critical calculations, use a software program designed specifically to assist homeowners avoid mistakes and prepare their application correctly.

The secret to a successful application is to complete the required loan modification forms so that you have met your lenders guidelines for approval. You must take the time to learn those guidelines and know how to prepare your forms properly so that you will have the best chance of success. Even the most deserving borrower may denied the help they need if their loan modification application is not completed properly. Make the decision to become informed and be prepared so that you can have a fighting chance to save your home. This is to important to leave to chance-thousands of homeowners have already gotten help and you can too!

Download immediately!

Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit myloanmodificationcenter.com and order today.