Is home loan modification an option for you if you can't make your mortgage payments?

Delinquent Mortgages

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Despite recent signs of economic recovery, millions of individuals still find themselves seriously delinquent in their mortgage payments and in real danger of losing their homes.

But while the situation may seem bleak, home loan modification experts suggest several methods to ensure the greatest likelihood of success when seeking to stave off foreclosure.

  1. Know your options. Once you fall behind, it is important to know when the foreclosure process starts in your state and the various forms of assistance available to you, such as the Federal government's Home Affordable Modification Program, Making Home Affordable, and the numerous programs available for FHA and VA loans.
  2. Do preliminary analysis of your situation. Make sure to know the basic guidelines of the program so that you will have better chances of success. The more you know about the program and the more detailed and accurate your application is the greater will be your chances of success.
  3. Begin the application process for a home loan modification with your lender immediately. In most cases, the sale of your property will be postponed while the review process is under way.
  4. Know the list of supporting documents that your lender will want and be certain to submit a complete package of current information (i.e. paystubs, bank statements etc.)
  5. Sign and date everything (i.e. tax returns, hardship letter, 4506 T, RMA).
  6. Know what questions to ask such as:
    • When was the last time someone was working on my file? If it's been over a month and there is no activity on your account, this could be cause for concern. Have the representative send an email to the underwriter or what is called an escalation email.
    • When was my file assigned to an underwriter/processor?
    • Is there an estimated date of completion?
    • Has there been a title or a BPO ordered? BPO stands for Broker Price Opinion. Similar to an appraisal, the lender will use this to determine value of your property.
  7. Follow up. Once you submit your packet, don't wait three weeks to call. Usually it takes anywhere from 24 hours to 72 hours for your information to be received and logged to your account. Make sure the lender has everything they need!
  8. Return phone calls and submit missing/updated information in a timely manner. If the lender calls you or sends you a letter requesting information, do not wait three to four weeks to send it in. Usually lenders will only keep files open for so long before they close out your request. Once that occurs, you'll have to start the process all over again!
  9. Follow up again. Check with your lender on a frequent basis to make sure they have everything they need to process your request. It is important to take notes of who you spoke to, the date, and what was discussed each time you have contact with your lender.
  10. Reach out to your local congressional representative. Send a letter to your local congress man/woman and explain that you have applied but have not heard back from your lender. Sometimes if you're lucky, your local government will contact your lender on your behalf.

Remember that it has been extremely hard for the lenders to keep up with the large volume of homeowners currently requesting home loan modification or foreclosure assistance. This process from beginning to end can take up to 30 days to 7 months to complete, depending on who your lender is and what their volume and practices are.

This article is courtesy of, a source for tools to save your mortgage.

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