Corona, Ca Do It Yourself Loan modification Help- part 1

Corona, Ca Do It Yourself Loan Modification: Step by Step Guide to processing your own loan modification.

Part 1

Do It Yourself Loan Modification step 1:

Now I must warn you step 1 can be the most trying part of doing your own loan modification but remember, when you Do it Yourself you save money and gain control of your loan modification and your home so do not let this first step scare you off.

The first thing you want to do to process your loan modification is figure out your income. Gather pay stubs for everyone who works in the family and contributes to the mortgage. You want to figure out the net (what is brought home after taxes and deductions).

There is a trick to this depending on how you get paid. Let's say for instance you bring home $500 every 2 weeks. You may be tempted to put down you make $1000 a month but in actuality you make more because there are 52 weeks in the year. So what you do is figure out your weekly pay which in this example is$250 x by 52 = $13,000 a year / 12 months= $1083.33 monthly income. If you get paid 2 times a month on a specific day then you do not enjoy this benefit and your income would be $1000 a month in this example.

Do this calculation for everyone in the household such as your spouse ect. You may have a side job where you make an extra $100 a week as an example, if so put this down it may help. Remember that the bank may want to see proof of this such as bank statements showing these deposits. If you have a family member that pays rent than you can use this too. Let's say your son pays you $500 a month then this is another income. But remember if someone pays rent you can not include the rent they pay and also their income.

Do It Yourself Loan Modification step 2: Figure out your monthly expenses. This is another hard step in Do It Yourself Loan Modificationbut you can do it. Gather all your bills: credit card bills, utility bills, food costs, and the like. You want to include your minimum credit card payments (even if you pay more), average monthly food and toiletry costs for the family, average utility bills, car payment, property tax and insurance if they are not included in your payment, and other mortgage bills if you have other properties also remember to include any income you make from rental properties in your income. Your lender will likely pull your credit to see if your calculations are accurate so make sure to include all bills that will come up on anyone who is on the mortgage. Hint: If you are a cosigner for a car but do not make a payment than make sure to show proof of this such as canceled checks made by the person who pays for the car.

Do It Yourself Loan Modification step 3:The task of gathering all this information can be daunting but many servicers will provide a form to fill out to make it easier. You can call to ask for this form or they may even have it on their website. When you call and ask make sure not to go over financial information on the phone if you are not prepared as many times they will record this information and it could hurt your chances of success. Simply say you need a financial worksheet and you do not have the information available yet. Never go off the top of your head. If your servicer does not have a financial worksheet than click here to email me and I can provide you with a generic one for free. If you feel stuck, do not go out and pay someone to do this for you. You can call or email me for free help or I can give you the number of a local agency that can help you for free loan modification help.

Do It Yourself Loan ModificationStep 4: After you have your financial worksheet filled out than you must gather documents to support it. Usually a lender will want to see 1 month of pay stubs for everyone whose income you used, 2 months bank statements all pages for everyone on the home loan, and the last two years tax returns for everyone on the home loan. If you have renters also provide rental agreements if you can. If you make cash income, a letter from your employer preferably on company letter head will help. If you are self employed the lender will usually want to see a profit and loss statement prepared by you or your CPA. You will also likely have to provide 6 months bank statements to prove your income instead of two months. You want to be as thorough as possible when putting together your loan modification package.

Do It Yourself Loan Modification Step 5: Hardship letter. Most lenders require a signed letter stating your reason for falling behind. Be sincere and express that you want to stay in your home but need help. Be specific and give the reason why a loan modificationcan save you from foreclosure. You can also include the payment that you would be comfortable with but be careful not to be unrealistic. If your payment is currently $2000 a month than asking for a $800 payment may be a bit over board. You will also want to mention if the hardship was temporary or is ongoing. Some good examples of a hardship is loss of income, loss of job, illness, injury, or death in the family. If you would like to see a sample hardship letter click here and I will email you a couple of samples to get ideas from. Remember your lender wants you to be sincere and specific. No two situations are alike.

Part two of Corona, Ca Do It Yourself Loan Modification will get into submitting your loan modification package and how to follow up with your lender. If you would like more personalized loan modification help or a little guidance, please feel free to call or email me. I will help you with no strings attached absolutely free. It is my goal to help 100 families this year save their home from foreclosure and I would be honored if I could help you. When it comes to a loan modification you CAN do it yourself for free.

Click here for Do It Yourself Loan Modification part 2.