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You never completed the required loan modification package. You don't make enough money to support a loan modification. You don't have clear title to your property. You don't have a valid financial hardship reason.
Loan modification is a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.
The loan modification process typically takes 6 to 9 months, depending on your lender.
No matter how focused your attention to detail, your credit score almost certainly will take a hit with a home loan modification. Often, a homeowner won't get approved for a loan modification unless there is evidence of one or several missed payments.
When you take a loan modification, you change the terms of your loan directly through your lender. Most lenders agree to modifications only if you're at immediate risk of foreclosure. A loan modification can also help you change the terms of your loan if your home loan is underwater.
The lender will require certain documents if you request a loan modification. These include bank statements, pay stubs, tax returns, your budget, and a hardship letter. The loan servicer might ask for other documents as well.
How to apply for a loan modification Gather information about your financial situation. You'll need to give your lender or servicer everything from tax returns to pay stubs to demonstrate you're experiencing financial hardship and are unable to make your monthly mortgage payments.Plan out your case.Contact your servicer.