Loan Modification Forms | Hardship Letter | Worksheet

A Loan Modification is when a lender agrees to modify any or some of the terms of the mortgage, making it more affordable for you. Making Home Affordable Loan Modification Program Can Help You:

Keep Your Home, Restructure Your Home Mortgage, Avoid Foreclosure & Bankruptcy These changes may include: 1) Reducing or modifying the interest rate, 2) Extending the term of the loan, 2) Changing the monthly payments, 4) Combining any of the above.

Home Loan Modification Programs

In order to qualify for the HAMP Loan Modification Program, your current home has to be your primary residence. This means if you have a rental home or vacation home and you do not live in it then you can not qualify for the federal hamp program. Your current home loan has to be equal to or less than $729,750. Also you had to have taken out your home loan before January 1st, 2009. If you have a prime loan, adjustable loans, and sub prime loans then you can still qualify for the HAMP Loan Modification program. Home Loans backed by any securities will also qualify.

If your home is owned by the FNMA OR FHLMC then also you can qualify for home affordable loan modification program. If you have a mortgage that is owned by the VA or FHA, you will not be able to apply for the HAMP Loan Modification Program. Your payment on the mortgage has to be more than 31% of your gross income. This includes interest, principal, taxes, homeowner association dues, and insurance.

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Documents You Will Need to Get Your Loan Modification Approved

Documents Required For Loan Modification Program:

1. COPIES OF MOST RECENT PAYROLL STUBS - Your will need to provide copies of pay stubs for the past 2 months for both the borrower and co-borrower.

2. COPIES OF LAST 2 YEARS W-2’s - Please provide copies of 2 years W-2’s for both the borrower and co-borrower.

3. (IF SELF EMPLOYED) COPIES OF FEDERAL INCOME TAX RETURNS - Provide copies of original signed and dated tax returns, including all schedules, for the 2 most recent tax years for both borrowers.

4. COPIES OF LAST 3 MONTHS BANK STATEMENTS - You will need to provide copies of the last 3 months bank statements for all accounts, please provide ALL pages.

5. COPIES OF MOST RECENT MORTGAGE STATEMENTS - You will have to provide copies of your most recent mortgage statement or coupon for your property.

6. COPIES OF MORTGAGE NOTES - Provide copies of all mortgage notes from original loan documents that currently exist on your property if you have them.

7. COPIES OF ANY DELINQUENCY LETTERS FROM YOUR LENDER - If your loan is currently in default, please provide copies of the letter.

8. HARDSHIP LETTER- You will need to provide a simple hardship letter.

9. FINANCIAL WORKSHEET - You will need to provide a complete monthly income & expense budget.

This web site is an advertisement designed for general information only. This is not a government website. The content of this site are for informational purposes only, and it should not be considered financial or legal advice. We aim to provide you with accurate and useful information, but every individual has specific circumstances. This information may not apply to every individual. Individuals specific circumstances should be taken into consideration. There are significant risks associated with investing, loans and mortgages. If you do not keep up your repayments on a secured loan or on your mortgage you could lose your home.

Here are some Tips on How to Write a Hardship Letter:

Your Loan modification hardship letter should describe your financial dilemma to your lending institution, explain the reason you need a loan modification, and show them that this is the help you need to keep repaying their loan. The lender must see that you are determined to keep your home, and that this take top priority in your financial affairs.Yes, your lender needs to know your story, but you must stick to the basic facts. Be brief and to the point. Sincerity makes for a more winning appeal than complaining or tear-jerking. Be honest, underscore how important it is to you to keep your home, and justify loan modification as the path to repayment of the loan. Your lender must believe that you will not default again if they modify your home loan.

Most Important Document for Loan Modification: Financial Statement Worksheet

Each lender will ask you to fill out a financial statement that you must submit to the lender. The lender will use this financial statement in determine if you are eligible for a loan modification. In order to successfully complete the lender’s financial statement you’ll need access to all of your monthly bills, bank statements and recurring expenses so that you can accurately document your assets and liabilities. A typical loan modification financial worksheet will request the following information:

Contact Information

Property information including estimated value

Current monthly income

Additional income (not wages) such as social security, child support, welfare, etc.

Estimated value of all assets

Home

Other real estate

Checking accounts

Savings

IRAs

401(k) accounts

Stocks, Bonds, CDs