How do you qualify for a loan modification?

How do you qualify for a loan modification?

Generally, to get a loan modification, you must: provide all required documentation to the servicer for evaluation (required paperwork will likely include a financial statement, proof of income, most recent tax returns, bank statements, and a hardship statement)

Do I need a lawyer for a loan modification?

There's no requirement that you must have an attorney to obtain a mortgage modification. Banks and financial institutions that issue mortgage loans have a hardship department. … Modifications can move slowly when a lawyer isn't involved. Having a lawyer by your side can move your lender to action.

Is a loan modification a good idea?

A loan modification can help if you're behind on paying a loan, such as a mortgage. Defaulting on a secured loan can result in the loss of your home, car, or other valuable possession. Although refinancing a loan is one possibility that can avoid, for example, foreclosure, it may also be possible to modify your loan.

Can you buy a house after a loan modification?

In most cases, you can get a mortgage to buy another house after a loan modification as long as you haven't missed any payments over the previous 12 months, depending on the specifications of your lender. But you need to know how your original loan was modified.