Mortgage Loan Modification - How Do Mortgage Loan Modifications Work?

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What is a Mortgage Loan Modification?

Step 1: Eligiblity before contacting lender
- steady income
- positive budget/balance
- unemployment benefits do not qualify
- must own your primary residence

Tips before contacting lender:
- Survival budget
- Prioritize your Mortgage

Step 2: Action Plan
- Hardship letter
- Reduce your expenses
- Manage finances

Step 3: Fannie Mae or Freddie Mac?
- May Qualify for Making Home Affordable Program

Step 4: Call Lender
- Mortgage Statement for Lender #
- Have questions, be assertive
- Have budget and expenses
- Straight to the point, no life stories

Step 5: Send Documentation
- Don't miss your deadlines
- Certify mail
- Follow-up

Step 6: Be Patient and Save money
- 90-180 days to complete
- Deferment of foreclosure proceedings
- Lenders and LMD need to communicate
- Enough for down payment