Understanding the Loan Modification Process in 5 Easy Steps

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Cutting through the red tape of the Government program announced back in March of 2009 can be daunting for so many American Homeowners.
I've done my research and have not found many user friendly sites that actually break it down step by step.
Granted there are thousands of Loan modification and foreclosure assistance companies all around the country but with federal and local government regulations clamping down on industry scams, there are fewer places for homeowners to seek advice.
So below we have put together some quick tips on how to apply for the government program Home Affordable Modification Program (HAMP), Making Home Affordable (MHA).
1) Request for Modification Affidavit (RMA) - make sure your T's are crossed and I's are dotted on this form, because it is a government form it has to be completed to perfection.
DO NOT LEAVE ANY INFORMATION BLANK!!! Your lender will reject it even if you forgot to put your date of birth on the form.
2) 4506 T & 4506 TEZ - What is this? People always ask me why I need to fill this out even if I provide my tax returns.
So the lender can pull a copy of your tax returns from the IRS, just to make sure the copy you sent in is actually the same that was reported to the government.
YEP believe it or not! There are some not so honest people in the world.
Again a government form, you guessed it has to be filled out signed, dated, and your phone number listed at the bottom.
3) Income documents - 30 days current! Do not send last years pay stubs and not 60 day old ones either.
When the lender says current pay stubs last 30 days they mean it.
Your better off waiting for your current ones then to send in older ones, because remember it takes most lenders on average at least 30-45 days to even look at your application! 4) Bank statements - Rule of thump here if your name and address is NOT printed on your bank statements weather they are online print outs or not The LENDER will NOT use them!! Again the 30 day rule applies and if your bank statement says pages 1 - 5 then you have to send them 1 - 5 even if there is one line of text on them.
DOES NOT MATTER! 5) Tax Returns - simple enough right? Since most of us file electronically we do not sign our copies why would we right? Well when you are submitting the tax returns make sure your 1040 is signed and dated.
Even if your accountant or companies like H & R Block, it will need your John Doe signature!! Make sure you provide all schedules as well.
Remember the most important aspect of your loan modification application is to stay on top of the process.
Make sure you are contacting the lender once you have submitted your loan modification application at least 2-3 weeks each month.
This will also help you track the progress so be sure to keep notes, take names and id numbers down.
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