How to Qualify for a Home Loan Modification

If you’re one of millions of homeowners who find they can’t pay their mortgage, there are some steps to take in the home loan modification process. You will need to convince your lending agency that you can afford the new payment schedule so there will need to be some proof of income as well as other expenses. All of these documents are listed in further detail here.

What You Need to Get Started on a Home Loan Modification

Your monthly mortgage statement, as well as information on other liens or mortgages on the property in question. For anyone putting down money on the mortgage, pay stubs or other proof of income for the last three months should suffice. In addition to the last months of income, the past couple years of tax returns should also be provided. Bank statements for the previous two months. Utility bill showing the homeowner’s name and the physical address of the building in question. If you’re receiving unemployment benefits, bring proof of that income, which may not be taxed. Any savings, checking or credit accounts and balances must also be disclosed. Including a hardship letter which further describes the circumstances which have created your inability to pay may also prove helpful, though this is arguable.

Steps to Qualifying for a Modification of a Home Loan

So you’ve got all the information you need to make your case and provide proof you cannot possibly make the same mortgage payments you’ve been making.

That doesn’t mean your lender is going to entertain a home loan modification for your property; they don’t just hand out this kind of help to anyone at all. With the hard evidence in hand, take these steps to maximize your chances of success.

Realize the gravity of the situation first and foremost. If you fail in this, you will most likely lose the place where you live. You’ve got to fight hard and even fight dirty if you don’t want this to happen.

Would you rather have a cool television package or a place to live and sleep at night? If you find you can’t pay your mortgage, it’s time to find other places where you spend money, places you don’t need to spend that money. Cutting back on luxuries hurts, but you have no choice.

Once you’ve got a realistic idea of how much money you have to work with every month, it’s time to take a look at your original loan. If you got bad terms or fell into the grips of a predatory loan, you may be able to get out from under it with a trip to a courthouse.

You must still be able to pay your lender enough money every month to make foreclosing on your home a less favorable choice.

Get Legal Representation Fast

There are many hurdles to leap over and hoops to jump through on your way to a successful home loan modification. The best chance you have of making it to the finish line is getting some good help on your side.

A home loan modification lawyer has the knowledge and experience necessary to help you get the most from your mortgage, even when your financial situation has gone bust.

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Comments ( 4 )

Unfortunately my attorney is not aggressive and assertive with loan modification.
Our house is not under water case, but my husband and myself who are both physician are old and have limitation to work. he has Cancer, but to be able to keep the house, he still work almost part time.
For past year , due to my own illness ( severe Anemia and fibromyalgia ) I could not work but by seeing few patients, I made payment ( interest only ) My Social security goes firectly to the bank ( bank of America) and I have to work to add to the SSA for paying interest only.
The amount of the HELOC is about $800,000.00 and the first mortgage is about $100,000.00.
I informed by several people that Bank of America negociated for loan modification with the owner of the houses which were not underwater and they were young an had high income.
The loan was used for a health care project and change of economy ruined the plan.
I hope I can get some advise from you.

Manijeh Nikakhtar added these pithy words on Jan 14 15 at 11:21 pm

The one major issue that I see with your situation is that you only owe 100,000 on your first mortgage and you owe 800,000 on your second mortgage. I would assume that your house is worth around 900,000; perhaps less if you think the mortgage is as underwater as you think it is. If your first mortgage with Bank of America should foreclose then they only need to recoup their 100,000 to clear the debt; so it’s your second mortgage company that would get wiped out. Your Bank of America mortgage will be less likely to modify since they have a great chance at recovering everything that is owed on the loan for $100,000. It sounds to me that you really need to modify the second mortgage loan. In many cases we have settled second mortgages for pennies on the dollar or reduced the usual mortgage payment substantially. Please call an advisor at 888-980-7566 for a free consultation to discuss your options and to determine what type of payment relief you qualify for.

Attorney Load Mod added these pithy words on Jan 15 15 at 8:50 am

I highly appreciate your response, but I apologize for not clarify enough the information that I provided
The first mortgage is not with bank of America.
The HELOC or second is with bank of America
My self and my husband are senior citizen. Unfortunately the person in Bank of America manipulated to give a big money for HELOC.
I was opening a drug rehab. My friend took me to hard money lender ( All California Funding) They did multiple fraud on usury law. I paid them with the intention that my attorney can file a law suit against ACF , so I can pay back the HELOC. Attorney dropped the case since he had no knowledge about usury law while I did research and noticed multiple fraud with hard money lender. After my attorney dismissed the case, I reported ACF to the Department of Real Estate. ACF filled bankruptcy and they lost their license. Later under different admin. they again started to work as lender. Unfortunately my attorney did not have knowledge about hard money lending and usury law Presently I am working with a reputable law firm, but I am not satisfy with their job and plan to work with another law firm who are expert in HELOC.

I am 75, my husband is 82
The HELOC was 2007 which should consider us elderly. The person in the bank made so much commission while she was on salary ( recently the bank do not give them commission ) The house Value is about 3 million, the balloon payment is due June 2017.
My social Security income goes directly to Bank of America and I have to add extra to pay the monthly payment ( interest only )
I heard from people that Bank of America did some loan modification on some properties which were not under water and their owner were younger and wealthy.
I appreciate your feedback, so I can change the law firm who can help.
Manijeh Nikakhtar,MD

Manijeh Nikakhtar added these pithy words on Jan 15 15 at 6:20 pm

Ok. You definitely have a ton of equity in the home and to lose that to foreclosure would be awful. You are correct a hard money lender in first lien position is not good. They have absolutely no interest in working with you and they will not hesitate to foreclose. We can modify your second loan with Bank of America and work with you to get a better rate with a different lender to extinguish the hard money lender. In some cases we will fund transactions like this in-house. I would strongly encourage you to speak with one of our advisors because your situation will get much worse very quickly. You can call 888-980-7566.

Attorney Load Mod added these pithy words on Jan 16 15 at 10:12 am

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Loan Modifications and Federal Services: In order to comply with various federal and state laws, may submit a Qualified Written Request pursuant to federal law, including the Truth in Lending Act (TILA) 15 U.S.C. § 1601, et seq., the Fair Debt Collection Practices Act (FDCPA) and the Real Estate Settlement Procedures Act (RESPA), codified as Title 12 § 2605 (e)(1)(B) and Reg. X § 3500.21(f)2 of the United States Code, and provide federal review and monitoring of the client’s file for federal compliance (not state) purposes. Please also review the FTC’s MARS rules for additional information as well as important resources for identifying scams. Other than providing federal support as stated above, cannot and will not assist with unsecured debt negotiation, and similar services. All unsecured debt negotiation, and similar services, if any, will be submitted to another qualified corporation or local attorney.

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