Stop Home Foreclosure

Many people try to handle the mortgage loan modification process themselves. If you decide to go the DIY route with a mortgage loan modification, you have to know what things you should do, but even more importantly, what things you should NOT do! In this article, we’ll go over a few mistakes that are often made in a loan modification application. Avoid these mistakes to increase your chances of getting accepted.

Mistake: Trying to negotiate with the wrong person. You may get called at home by someone from the collections department about your unpaid mortgage bills. Don’t bother trying to talk with them about mortgage loan modification. These people are unable to help you and are just calling to get the money. You’re better off contacting the correct department of your lender, so you can speak with someone that can actually help you out.

Mistake: Not taking the time to study the mortgage loan modification process. If you don’t take the time to do a little preparation before turning in your application, you may as well save yourself the hassle. Without preparation, there is an enormous chance your proposal will be denied.

Mistake: Omitting information when applying for mortgage loan modification. Be aware of the fact that the bank WILL check up on the facts you provide, so don’t be tempted to omit information or even lie. You will get caught and all your chances of getting a mortgage loan modification will go down the drain. Banks really don’t like it when you don’t tell the whole truth.

Mistake: Paying a big upfront fee to your mortgage loan modification company without checking their credentials. Because of the rise of foreclosures these days, there are a lot of mortgage loan modification companies rushing into the market. Some of these companies are not very qualified to handle your mortgage loan modification. You need to make sure that you’re dealing with a qualified, reputable company before paying them a dime. Mortgage loan modification should get you out of financial hardship, not deeper in the hole.

Mistake: Trying to piece together a loan workout that doesn’t meet the approval criteria of your lender. This shows the lender that you did not take the time to go through the paperwork and you did not read up on the approval criteria. This is one of the quickest ways to get your application denied, so take the time to read up on the approval criteria.

Your application will look good to a lender if you don’t make the mistakes we’ve outlined in this article. The final decision is up to the lender, but taking the time to do your mortgage loan modification right greatly increases your chances of being accepted.