When you think back to the time you bought your house, you probably remember having to fill out a lot of forms and provide a lot of documentation. There is no doubt that buying a home is a detailed process, once which includes a lot of paperwork. So if you are thinking about asking for a modification of your mortgage, in an effort to lower your current house payment, you might be hesitant to go through that paper intensive process again. But a modification of your mortgage is a different process than applying for a mortgage loan, and the amount of time and paperwork required is not as much.
The typical process for a mortgage modification, and a short list of the most common documents required, is:
• Making a request for a modification, which can be done over the phone with your current lender and then followed up by filling out a short application form if, after a quick phone call you are still interested in the modification program being offered.
• The application will likely include a request that you submit documentation of your earnings. Most people do this by providing pay stubs, but you could also provide a W2, or a tax return.
You will probably also have to provide the past few months’ worth of your checking and savings account balances. This is done by giving the mortgage lender copies of your most recent bank statements, and depending on your mortgage lender, you may be able to provide copies you print yourself from online banking. It is unusual to be asked to provide much more than what is outlined above, but it can happen. For instance, don’t be surprised if you are asked to turn over a copy of your homeowner’s insurance policy, or to provide information about your property taxes. These documents are needed if your mortgage includes an escrow account for payment of these expenses, and in order to accurately calculate your new payment under the modification, the lender has to know these cots. And once you do provide the completed application and the requested documents, you have to stay on top of the lender for a response. Some lenders have the reputation for asking for duplication documents, so it is always a good idea to keep a record of what you have already provided. If you need help with the process, we are here to give assistance, and can also talk over other options with you.
For more information about how to manage debt or what is needed to modify a mortgage loan, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.