The modification process has several steps. The length of time and the documentation required will vary greatly depending on the lender and the nature of your personal situation.
The basic process for modification is as follows:
1) Signature and Documentation:
The loan application documents required in the lender’s packet must be completely filled out including required signatures. All documentation must be submitted per the items listed in the packet along with any documentation for your specific circumstance.
2) Submission of Documentation:
Once the application is completed and the required documents are gathered your loan number and the last 4 of your social security must be noted in the right hand corner of each page.
The application and the documentation can then be submitted to your lender via fax, email or US Mail depending on their submittal process.
The loan application and the documentation, once received by the lender is reviewed by your personal contact person for legibility and completeness.
The personal contact person will contact you if the loan application is incomplete or documentation is missing.
Contact your personal contact person on a weekly basis to check the status and updates to expedite this process.
Once your application is considered complete the application and documentation is then sent to an underwriter for review and approval.
Depending on the information and documentation that was supplied the underwriter might request additional information or documentation before making a determination.
This last step takes approximately 30 days before a determination is made.
5) Approval for Trial Payments:
Once your application is reviewed and if approved you will be required to make 3 trial payments before your final loan modification is approved.
The trial payments need to be made in a timely manner or your loan modification will be denied.
6) Final Approval:
Once the 3 trial modification payments have been made and received by the lender, the final loan modification will be prepared and sent to you for review and approval. If the terms are acceptable, you must sign and return the loan modification in the allotted timeframe.
If you currently are in a bankruptcy, Court approval must be obtained before the loan modification is final. A motion will be prepared to file with the Court and set for hearing in order to get the required Court approval.
The loan modification is not final until all the required documents are signed by both the lender and yourself.
You Can Pursue A Loan Modification While You Are In Bankruptcy
Individuals very often apply for and obtain loan modifications while they are in an active bankruptcy case. They may initially file a bankruptcy case to stop a foreclosure sale, and they often propose to catch up on their home mortgage through a Chapter 13 bankruptcy plan over a period of three to five years. If individuals are significantly behind on their home mortgage, they may not have the financial ability to catch up on the mortgage through the Chapter 13 Plan over a period of 3 to 5 yours. Your attorney will explain this to you. An alternative would be to apply for and obtain a loan modification while you are in bankruptcy.
BANKRUPTCY HAS BECOME INCREASINGLY COMPLEX AND SHOULD NOT BE ATTEMPTED WITHOUT THE ASSISTANCE OF AN EXPERIENCED BANKRUPTCY ATTORNEY. THE INFORMATION CONTAINED IN THIS HANDBOOK IS INTENDED TO INFORM YOU OF POTENTIAL ISSUES APPLICABLE TO YOUR FINANCIAL SITUATION WHICH SHOULD BE DISCUSSED FURTHER WITH AN ATTORNEY. THE INFORMATION IN THIS HANDBOOK IS NOT INTENDED TO CONSTITUTE LEGAL ADVICE DOES NOT ESTABLISH OR CONSTITUTE AN ATTORNEY-CLIENT RELATIONSHIP WITH UTAH BANKRUPTCY PROFESSIONALS OR ANY OF ITS ATTORNEYS OR ASSOCIATES.
For more information Process For Obtaining Loan Modification, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (801) 501-0100 today.