Do I meet the requirements for a mortgage modification

In many instances a homeowner is set up on a stipulated plan before implementing a loan modification which allows a lender to monitor the financial condition of a homeowner during the repayment plan period to be sure the homeowner will be able to make payments to the lender. There are important forms required that are reviewed by a lender

Hardship Letter:
To qualify for a loan modification homeowner must have a valid hardship. The hardship must be known and given as many facts as possible to sustain your case. A is very subjective and pretty much a requirement in the course of getting a loan modification. There are a few adversities that are considered charitable and do not meet the criteria quitting a job or decreasing the total hours worked are typically unacceptable. The adversities are known and if there is an additional failure to pay the homeowner can not use the same reason for failure to pay otherwise their previous adversities was really not over and in many instances the homeowner is not allowed a loan modification.

Financial Statement:
This is used to determine the homeowner ability to pay. This is usually the first document reviewed by the servicers negotiator. This document must clearly indicate monthly earnings and everyday expenditures as well as current assets and liabilities. This is what makes and breaks the entire loan modification review. This document also shows whether or not the homeowner will be able to make payments if the loan is modified. There must be a excess earnings at the end of the loan modification or else the plan will be denied. The plan must be affordable. If a homeowner is severely over-leveraged with debt there is little chance that a loan modification will cure the delinquency. Monthly everyday expenditures are reviewed to determine what bills are necessary and what are unnecessary. Necessary everyday expenditures are meals, utilities and gas and an example of unnecessary are entertainment everyday expenditures, expensive phone plans and unsecured debt. Household everyday expenditures loan payments, utilities, and taxes take up most of the monthly budget. Do not make fixed costs look unreasonable will be a red flag to get further detail. The negotiators will always look for assets that can be liquidated.

Proof of Wages:
The proof of earnings is usually a paycheck stub, a P&L Profit and Loss Report if self employed, or checking account account showing paycheck deposits. The proof of earnings is required to prove the homeowner has steady earnings. The homeowner must also give frequency of earnings. The proof of earnings must correspond with the earnings shown on the financial account. Resolve any discrepancies