Homeowners who struggle to meet their financial obligations may consider a loan modification. If approved, a request for a loan modification can result in a more manageable agreement with your lender.
Some tips to help better ensure a successful request include:
- Submit a complete application. One of the most common mistakes made by homeowners when requesting a loan modification is the failure to submit a completed application. Make sure all necessary information is complete. Double check that every signature block is signed and all necessary information is included within the application packet prior to submission.
- Explain your situation. Explain the circumstances for the loan modification request to the lender. Lenders generally require a homeowner establish “undue hardship” before they approve a modification request. Examples of undue hardship can include excess medical bills, a family emergency or the loss of a job. The ability to clearly point out a reason for the delayed payment can bolster your case and better ensure approval.
- Provide a realistic request. Do not offer a modification that you cannot pay. It can also help to include a time period on the modification request. A temporary request may increase the odds of approval from the lender.
It is often wise to consider the use of legal counsel when putting together a loan modification request. An attorney experienced in the loan modification process in Florida can provide guidance on the information to include within the application as well as representation in the event the request is denied, as a denied modification can often be appealed.