Currently almost 2 million struggling homeowners are in need of loan modification help so they can stay in their homes and avoid foreclosure.  The Federal Government is urging all lenders to initiate systematic loan modification programs to homeowners facing unaffordable monthly payments and possible default.  Many banks have already implemented their own programs aimed at over 1.5 million borrowers who are seriously delinquent on the payments.  

Homeowners trying to get the loan modification help are frustrated and confused and wondering how to start the process.  If you are a borrower stuck in an unaffordable mortgage, you should start by learning as much as you can about the loan modification process so you will have a better chance of getting the help you need.  Since not all borrowers will qualify for a loan modification, you can increase your chances by taking the time to learn and prepare before you contact your lender.  You will need knowledge, persistence and patience to successfully modify your home loan.

Your lender will ask you to submit an application to begin the loan modification process.  Probably the most important part of this application are the Financial Statements.  These forms are basically a snapshot of your current financial situation that itemize your assets, income and expenses.  Based on the information you provide, a determination will be made if you qualify for loan modification help.  The tricky part is proving to your lender that while the current mortgage payment is a hardship and unaffordable, you will be able to pay and maintain the new, lower monthly payment.  Here are some tips to help you prove this to your lender:

• Disclose all of your income and debts.  Your lender will be verifying the information and will pull a credit report to compare what you have listed.  They will also review your bank statements for income and expense verification.
• Homeowners who list untapped assets such as savings accounts, investment accounts, etc. may not be deemed to be in a hardship situation.  The bank will expect you to use these funds to pay your mortgage payment.
• To prove that the current mortgage payment is unaffordable, complete a Current Financial Statement showing that it is a financial hardship trying to pay the current loan payment along with all of your other expenses.
• Next, prepare a Proposed Financial Statement, verifying that with a new, lower modified payment you can meet your expenses and have a little left over at the end of the month.  This assures your bank that if granted the loan modification help, you will not be at risk for re-default.
• Have a family budget meeting, agree to cut back on any unnecessary expenses like recreation, club memberships, etc.  The bank wants to know that our have made a diligent effort to get your finances in order and are making sustained home ownership your top priority.  Eliminate any frivolous expenses from your final Proposed Financial Statement.

Loan modification help is available to homeowners who can demonstrate they fit within their lenders guidelines by preparing an acceptable loan modification application.  Take the time to learn, prepare and then submit your application.  Loan Modification is not brain surgery, but even the most deserving homeowner may be denied if their paperwork is not completed properly.

You can get the loan modification help you need 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  loan modification help, please visit us at: http://www.myloanmodificationcenter.com