What Can I Expect in My Loan Modification Process?
Modification of any mortgage is definitely a process and a host of paper work. Initially you will meet with whatever professional you select to assist you with your matter then generally the process goes as follows:
1) Determine what you actually CAN pay on your mortgage. A cold, honest appraisal now will save you even more heartache later.
2) Gather all the necessary documents requested of you by your loan consultant. Don’t delay on this – the faster you submit your information the better.
3) An “Authorization” will be sent to your lender so that the professional will have authority to speak with the lender on your behalf.
4) All submitted documents will be processed and sent to your lender. Depending on the loan modification professional, an accompanying offer letter may also be sent including the amount that you can pay.
5) Within approximately thirty days (depending on the lender) the bank will contact either the borrower or the authorized professional to discuss the borrower’s request. Either the lender will request more information, make a proposal for modification, or deny the request for modification and likely provide a brief explanation as to why the request was denied.
The hardest part of the loan modification process is gathering the requested information and carefully composing the proposal to ensure that the lender will approve the loan modification.
One little piece of advice: Make sure you really CAN make the new mortgage payments that you propose! Failing to make the mortgage payments after a loan modification will put you in a deeper hole than you would have been without the mortgage modification!
Good Luck!
Loan Modification in California 