You may be able to get a mortgage loan modification if you are not behind in your payments because the lender’s risk is not as big compared to someone who is way behind on his mortgage payments. However, your lender would naturally be curious as to why you would need a loan modification if you are not late on your payments. This is because a loan modification is often requested by homeowners who have already fallen behind as a result of a financial hardship.
The Obama Administration announced the making Home Affordable program in March that was received with much fan fair by struggling homeowners since it had a provision in the plan to extend assistance to homeowners that are not yet late on their home loans. However, here at LoanSafe.org, many members have experienced the complete opposite and are NOT getting assistance from their mortgage servicers. Yes, some have got help, but very few are and many are getting BS excuses ad to why they are denied.
If you are going to try to reach out, this is what I recommend.
You will have to be prepared to provide an acceptable reason why you will require a loan modification and this is usually through a financial hardship that is temporary in nature such as a major expense or a decline in your regular income. In short, you must be able to show the lender that your current situation will soon prevent you from making the necessary payments.
Also, show them that you are a savvy consumer who is educated on the Making Home Affordable programs and that you are prepared to fight them until the end for this modification. This may include going to the media, congress and posting the truth online in public forums. This may let them know that you are a consumer that is not to be messed with.
Remember that the bank will also benefit by modifying your loan if you can prove that your current financial situation is temporary and that it prevents you from complying with the monthly payments. A reduction in your monthly payments and extension of the duration of payment would be a better option than initiating foreclosure proceedings when you default on your payments.
You will need to present a letter describing why you are undergoing financial hardship. You will also have to present proof about your current income to show the lender your current financial situation. He will use this to determine if he could come up with a monthly payment that would suit your situation. This is usually provided by presenting your latest pay slips and your monthly budget and expenses. You will also be required to show that you are actually residing in the said property.
There could be various reasons for financial hardship. These include military service, job displacement, the death of a spouse, divorce, or excess medical expenses. However, remember that your goal is not to prove to the lender that your financial situation is hopeless. Instead, you should be able come up with a plan on how to improve your situation.
I have personally witnessed homeowners fight for 3-6 months and sometimes up to one year to get help when they are not late and the ones who do not quit are the homeowners who end up being successful.
That is the common trait, persistence and tenacity that all home savers have!