Don’t panic if you have received your first “Notice of Default,” you still have 90 days to redeem your property in a non-judicial state. (Different rules may apply in other states see State Foreclosure Laws).
You will have an additional 20 days prior to your lender exercising the “Notice of Trustee Sale.” Even though you may not know very much about foreclosure and the loan process, that doesn’t mean that you should not fight for your right to keep your home.
A loan modification may be your solution to foreclosure.
I am giving you a cheat sheet to keep with you when you talk to your lender/servicer for your loan modification.
Request the following information from your lender/servicer:
|Your Loan Modification Cheat Sheet|
|Application||Request your loan modification application|
|Eligibility||What do you need to qualify for a loan modification?|
|Timeline||How long is the loan modification process?|
|Contact Person||Who is your contact person for the loan modification? Be sure to get there name, phone number, fax #, email, and ID?|
|Deadline date for response||When can you expect to hear from them? What date?|
|Loan Programs||What loan program (Making Home Affordable loan programs) will best satisfy your circumstances? By all means, step in and tell them what loan program you would like to be considered for. (see my foreclosure solutions).|
|Request an Independent Foreclosure Review||Be sure to request an Independent Foreclosure Review if yourmortgage loan was serviced by a mortgage servicer outlined in the Federal Reserve Board’s enforcement actions|
|Hardest Hit Funds||Be sure to check if you are part of the Hardest Hit Funds (HHF) in one of the 18 states that would qualify for additional assistance. Ask your lender if you may be considered for additional funds to help with mortgage payments, if possible.|
|$25 Billion Dollar Mortgage Settlement||You may be part of the $25 Billion Dollar Mortgage Settlement that was awarded to 49 states. Be sure to ask for a principal reduction.|
Most lenders will require the following documentation to qualify for your loan modification:
|Documentation Needed for Your Loan Modification|
|Hardship Letter||Proof of hardship explaining what has caused your current financial problem. (see examples of hardship letters)|
|Income||Current 1 month’s paystubs, 1 year of W-2|
|Bank Statements||1-2 months bank statements|
|Assets||List of everything you own|
|Liabilities||List of all outstanding debts|
|Federal tax returns||1040’s, Corporate tax returns, etc. for 1-2 years|