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.


Scott Forgey said...

Great Advice!

Consumers should be aware of all the games that are being played in this get rich off the poor climate.


Everyone should talk to a professional with a professional ethical duty to serve...that means an attorney...not some fly by night "helper" with no motive but money.

Thank you for being an attorney who takes this economy and culture seriously!

Sacramento Bankruptcy said...

It’s when a borrower who is facing great financial hardship and is having difficulty making their mortgage payments — works with their lender to change the terms of their mortgage loan.

Roy Bush said...

I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. After researching the web I found a loan program at, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. Good to see lending options coming back.

CFS Mortgage

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