Financial Resource: Beginner Investing to Financial Independence!

After considering all your option to get over your debts, if you decide upon a loan modification, the next obvious question is what are the requirements for it. What is the paper work and how much time will it take? The simplest thing to understand is that filing for a mortgage loan modification is nothing different from filing a loan. The loan modification companies wants to see certain documents that will show that you are eligible for a home loan modification and once you get it you will be able to pay some amount every month as installment.

Following is a list of documents that most lenders would look for:

• Hardship Letter: This is a letter that you prepare to show what triggered this situation on you, making you incapable of paying your mortgage payments. You have to attach your divorce papers or pink slip or hospital bills, whatever the reason may be.

• Financial worksheet or Borrower information sheet: This sheet shows your monthly incomes and your assets that you own.

• Copy of federal income tax returns from two previous years.

• Copy of W-2 forms from two previous years.

• Copy of bank statements from two previous years.

• Copy of pay stubs from two previous months.

• Your mortgage statement copy.

• Property tax statement copy.

• A proof of homeowners’ insurance: Your insurance agent can give it to you.

• A projected financial statement: This shows fluctuations to your income and expenses and the amount that you will be able to pay in such fluctuations, if you get the loan.

• A Cover letter: This is to explain your purpose of submitting your paperwork and make sure you mention your name and account number.

All this documents should be compiled and signed the ones that need your signature. You cannot ignore the fact that there is only one chance to get your application approved for loan modification, so prepare your documents carefully. Follow the lenders instructions and include all the documents that he has asked for in the manner that he has asked for.

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