Are you a homeowner seeking to lower your monthly mortgage payment through a loan modification application? Perhaps you're attempting to process a short sale application.
The application process can be challenging and lengthy.
Oftentimes, paperwork gets lost, your file gets transferred to a new processor, or additional information is needed.
Above all, diligent follow-up and patience is needed.
Below are some tips you might find helpful.
Contact Your Mortgage Company - Every lender is different so contact them to find out exactly what documentation they require from you.
Make sure you send them everything they requested.
Typically, they will want the following.
Hardship Letter - In order to process a loan modification or short sale application, you must include a hardship letter that explains the reason for your request.
Provide details as to when an income loss occurred and any other mitigating circumstances that create the hardship.
Income Verification - This is a critical component of your application.
Typically, the mortgage company will want copies of your most recent pay stubs, as well as any other income source such as your spouse's income or rent received from a tenant.
Bank Statements.
The lender is going to want to review your most recent bank statements in order to verify your income and expenses.
Did you receive any gift money to help make ends meet?If so, make sure to include a detailed explanation of the income source.
Send Your Documents to the Mortgage Company - Typically, the mortgage lender will supply you with a fax number as a preferred way to send your documents to the company.
Unfortunately, fax's often get lost, separated or sometimes take 10 days to download into their database.
As a backup, I suggest you mail your documents to the mortgage company as well.
Label Each Page With Your Name and Loan Number.
Allcorrespondence sent to the mortgage company should include your full name, address, and loan number on each page.
Call Frequently - Follow up, at the very least, on a weekly basis.
Mortgage Companies are inundated with application requests for loan modifications and short sales.
The person handling your file may leave the company or your file may get transferred to a new processor.
Sometimes, your file is not being processed further up the chain because additional, or updated, paperwork is needed.
Do not wait for them to call you.
With the astronomical number of files being processed you must be proactive! If you are in a position where you need to sell your current home and it's likely to be a short sale, picking a Realtor with short sale experience is critical to getting the short sale approved.