It may seem that applying for a loan modification is like putting money in a slot machine. Some people get lucky and end up with a newly modified loan, while others, for no apparent reason, aren’t so lucky. There are, however, things you can do to prepare yourself when seeking a loan modification, and these steps, when followed, can greatly increase the likelihood that you will be selected to receive a loan modification.
1. Familiarize yourself with any laws or policies that may be applicable in your local region. Has any new regulation been passed that might affect the loan mod process? Make sure you know about it. Individual lenders may have unique policies as well. These laws can change often, so be sure to get the latest information before applying.
2. Prepare your application thoroughly before you submit any parts of it to a lender. If you forget a part of the application package, you are much less likely to be approved, and even if you are, it will take much longer for your application to be processed. Get everything together before you send any of it.
3. Obtain the aid of a loan mod expert, someone who knows exactly how to structure an application and exactly what you’ll need to include in order to make your application stand out. If a lender denies your first application because it is incomplete or unprofessional, that lender is much more likely to deny your next application as well. It’s very important that you get it right the first time, so get all the help you can.
4. Gather all the documentation that may be required as part of the approval process and have it on hand for your loan modification professional to review. This may include bills, tax forms, proof of income, and so on. Talk your application over with your loan modification professional and check for completeness before submitting anything.
A loan modification is a complex process, and if you have no previous experience in this field, you need to seriously consider getting assistance from someone with the qualifications and experience you lack. Preparation, whether done on your own or with an expert there to help you, is crucial for getting approved.