Sunday, February 15, 2009


Maybe as a result of the market, or because of the bailout, there has been a lot of success with loan modifications. Some banks are more willing to work with you than others. You have to be patient with the results. In what seems like a good gesture on their part, the bank may initially allow you to miss a few payments if you come up with a significant down payment towards your past due amount. This will not be the best offer the bank can make. Nor will it likely be in your best interest to take what they offer.

There are various companies offering to assist with the modification. Some of these companies have good success. Others really do not do much for you. If you are going to try to do a loan modification, make sure you use a reputable company.

When seeking to modify, you will need to provide:

hardship letter
tax returns for 2008 and 2007
a month of paystubs
bank statements
original loan closing statements
list of income and expenses

Modification should be an option that you should examine thoroughly. It could lead to a good result for you.