How Legal Advisor Group Helps With Loan Modification

Pursuing a loan modification can be overwhelming and complex for someone who is inexperienced. In order to obtain a loan modification, you must submit documents in an effort to prove your eligibility. In order to be eligible, you must meet the following requirements:

  • Show that you have sustained financial hardship
  • Provide proof that you are unable to make your monthly mortgage payment
  • Complete a trial period that will confirm your ability to afford the modified monthly payment you are proposing
  • Balances and payments for other debts and financial responsibilities
  • Submit all relevant documents and paperwork to your lender

One of the more challenging facets of the Loan Modification process is the gathering and organizing of appropriate documents to build your case. A partial list of the documents you’ll need include: proof of income, tax returns, income from child support or alimony, bank statements, a letter summarizing the details of your financial hardship, and more.

The Home Affordable Modification Program (HAMP)

First introduced in 2009, HAMP is a program that was created to help homeowners avoid foreclosure. This program was designed to encourage lenders to work with borrowers who have fallen on hard times in an effort to avoid foreclosure. HAMP strives to modify loans, and make payments more affordable for borrowers who are currently in financial distress. To qualify for this program there are several eligibility requirements that must be met and documented thoroughly. Requirements include: proof of income, verifiable financial hardship, the property must not be condemned, you must be at risk of imminent default and more. You will also need to complete a three month trial period in order to confirm that you are able to make the payments on the modified plan.