How To Get A Home Loan Modification Approved

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How to get a home loan modification approved? Are you behind on your mortgage

payments? Maybe you know someone that is facing foreclosure. Well, hopefully we can

help. A loan modification, a mortgage modification can really help readjust

those mortgage payments so that they're affordable. But there's a process to it

and I'm going to show you how. Let's go.

I'm going to share with you the number 1 mistake that people make when applying

for a mortgage modification. Number 2, I'm gonna share with you the

step-by-step process that lenders take you on. The process that you're going to

have to navigate. I'm going to tell you all of the tips and tricks so that you

don't get tripped up. And then last but not least, I'm going to share with you my

secret to writing a hardship letter that actually gets your loan modification

approved. So, let's talk mortgages. Before we get into mortgage modifications or

home loan modifications, we have to first talk about a mortgage. So, most people

that own a home do have a mortgage payment, okay? And so, when you finance

your home, when you purchase your home, you went through a process where you

showed your income and your assets and your employment. And the bank approved

you and now you make a payment to the mortgage company each month. Well,

sometimes you're not able to make your payments. What happens if you lose your

job? What happens if there's a pandemic and your job is lost or you can't go to

work for many months? And now you can't make your payment. Well, millions and

millions of people are facing this as a situation. And so, lenders have a solution

for you. It's called a mortgage modification. It's where they will

readjust the payments, okay? They don't give you a new mortgage. They modify your

current mortgage payments so that is something that you can now afford based

on your new situation. So, when you first got your home for example, you had your

employment you had your job, you had your set income. But when something changes,

for example do you lose your job or maybe someone gets sick or your husband

dies or whatever the situation may be, you may need to do a loan modification

and lenders have that for you where they adjust the payments downward to make it

more affordable. Sometimes that is a temporary adjustment where they modify

the mortgage for just a month, a year, 6 months, a year, 12 months, 2 years.

Whatever the situation may be, it is based on your situation and you and the

lender can work through it. So now that we know, this is a solution for you. Let's

talk about how we get it done. So, a very important thing that you need to

know is the point of a mortgage modification is to avoid foreclosure,

okay? You do not want to get a foreclosure. You do not want to be

foreclosed upon. And that is where the lender will come and actually repossess

the home, they will move you, your family whoever is living there out of it. It's a

process that usually happens through the court system in most states. And it is

very, very detrimental to usually your emotional state to your family and to

your credit, okay? So, having a foreclosure and going through that process can be

awful. And this is the point of why you would want to modify your mortgage

instead of actually getting foreclosed upon. And for the lender, foreclosure is

just as bad. They are not looking or wanting to foreclose on properties. In

fact, they would much rather you continue making your payments and stay in that

home. Because for a lender, a foreclosure can also be very expensive, okay? They

have to remove you, they have to go through the court process in most

states. They have to pay to have someone maintain the property. They now have to

pay for the property. They have to pay the taxes and the insurance and getting

the grass cut and all of the things that goes on with maintaining a home, the

lender would now have to do. So, foreclosure is definitely not what you

would want or what the lender would want. So, this is why you need to reach out to

the lender. You need to know this is not what they want to do. And go into the

situation claiming that this is not what you want for yourself and let when you

speak to the lender. Let them know this is probably not in their best interest

either. So, that both parties are working towards a solution. That's the first step.

Have that initial conversation with the lender. And in that first conversation,

again, make your intentions clear that you want to stay in the property. That is

a very, very important aspect on a loan modification. Many people don't ever say

that. They don't make their intention known. And the lender doesn't think that

you are serious. So, when you call the lender and you say, "Hey, I'm in this

financial situation." Explain the situation. Also make it very clear your

intent to stay in the home, okay? You want to give them that security. You want the

the lender to know this is what you are intending to do and that you're trying

to work towards a solution. The next thing when it comes to getting

approved for a loan modification, you usually have to be behind on your

mortgage payments, okay? Usually it's 2 or 3 months. But if you come into a

situation where you've lost your job or you know that losing your job or your

income or your employment or sickness or whatever the situation is, is eminent, you

want to reach out and say that to the lender. You want to start having those

conversations and have that communication be open. Now, you do not

want to give too much information to the lender because they will use that

against you if they need to. However, if you stick to what I said just explaining

what the situation is really briefly --just the facts, you don't need to go into

long emotional stories. Just the facts and stating your intention to keep the

home, those are the initial conversations, okay? So, as soon as you get behind on

those payments or as soon as you feel like this is eminent, do not hesitate to

call the lender. Do not avoid their phone calls, do not avoid the letters. Be

proactive, be open with your communication. The worst thing that you

can do when you're trying to get approved for loan modification is ignore

all of their phone calls, ignore all of their letters. You know, pretend... You know,

change your phone number. Go off the face of the earth and then when they're about

to foreclose on you, call them up and beg them for a modification. That's not what

you want to do. You want to be the good person that is reaching out proactively

and starting the process so that it benefits you. After you have the

conversation with the lender, again, being proactive with them, you want to put in

an application for a loan modification. It's usually a very simple process. It's

usually not a very long process. They usually just have you write a letter

telling them what the situation is or they have a quick application for you.

Again, this is the first step. And once you have major intentions clear that you

can't pay... And this is your primary home. Again, this is not I'm not really

speaking for investment properties in this case. I'm talking about your

personal mortgage for your personal home. That is what is considered a homestead.

And in most places and in most states, there are lots of laws that regulate

your homestead. They don't want you to just be thrown out on the street and

homelessness, okay? And so if you're having these conversations with the

lender and you put this on record that you want to keep the home, you want the

loan modification and that you're unable to pay at this time and you put this

(again) on record with the lender, it will

usually stop the foreclosure process, okay? All you have to do is actually

communicate and make this known, okay? And put it on record whether it be on phone

on a recorded call or with your letter in your actual application. Put it on

record. Okay, okay. And this is super important. I have to take a quick detour.

Just really tell you. So, as many of you guys know Noelle actually used to work

in corporate America in mortgage banking. So, I was actually a VP at Chase and

Mortgage banking. I was in leadership at Wells Fargo, Bank of America. I've

actually held a lot of very high positions at most of your biggest

lenders. In fact, the big 3 I've worked at all of them as well as some

other mortgage companies. So, I can tell you from experience, okay? This is insider

tips here. This is what lenders are looking for. You have to submit your

documentation, okay? Now again, this is Noelle telling you an insider secret. Do

not give them more than what they ask for, okay? No less, no more. Exactly what

they asked for it. Because in most situations especially in the environment

that we're in now after the whole fiasco that we have in the United

States in 2009 with all of those foreclosures, they've changed lots of the

laws. And many of them are in the consumers favor, okay? They're in your

favor. I know. Trust me. I worked at a bank. They don't

tell you this stuff. They're never going to tell you these things but they most of

the laws are in your favor. So, when you submit just submit the documentation

that they're asking for, do your best, okay? Don't just not submit something. If

they ask you for something and you don't have it, submit a piece of paper that

says do not have. You like upload it to their system literally. That is a trick

that you want to do. Do not just not submit something because they can look

for reasons that you didn't submit documentation in order to deny your loan

modification. But as long as you are willing and actively taking their calls

and giving them the stuff that they ask for, in most cases, they have

you look at it and approve you, okay? Additionally, if for some reason your

longer your modification is denied, I'm going to tell you exactly what to do

because there is a secret to it. So, the big secret with most loan modifications

is that hardship letter, okay? So, yes. They are looking at your income to make sure

that you can repay the loan. So, if you have like no income at all and you have

no job prospects, there are things that they can do where they can put you in a

forbearance where they suspend your mortgage payments until you find a job.

And then they can give you a loan modification. But again, your intention

has to be really clear that you want to stay in the property. It is your

homestead and then you write a very compelling hardship letter, okay? And your

hardship letter is the reason why you got into the situation where you need

the modification. What is your hardship? What are your extenuating circumstances,

okay? And this is a big word that lenders use but most people don't know what it

means. They want to make sure this is a one-time event. If you make a letter and

you start talking about your financial mismanagement or mistakes that you made,

do not do that. Do not. Do not take any of the blame, okay?

I know this sounds crazy but really don't take any of the blame. You want

your hardship letter to talk about external factors like the economy, like

your job. Downsizing, layoffs, things that you did

not have control over. Extenuating circumstances. Things that don't happen

all the time. Someone got sick, someone died. Something like that. Stay focused on

that. Do not say "My husband ran off and then I had to use my credit

cards and then I did this." No. Try not to take any of the blame. But be

responsible in what you're going to do going forward. That's the key. I know I gave you a lot of

great information. Please make sure you watch all of the videos in this playlist.

Noelle is here every single weekday providing these content for free. Almost

like a free course right here for you. So please go ahead

this video. Comment below if you have any questions about loan modifications. Like

I said, I have not only master's degrees and MBAs and all this great stuff. I also

have a lot of experience working in the mortgage banking finance. In fact, all

the way from starting at the bottom moving all the way up to... So, I know a

lot of information. So, ask your questions. I am here to help you. This is Noelle.

To your success.