Applying for a loan modification is often a long, daunting and complicated process that leaves many homeowners feeling powerless and “in the dark” while they’re waiting for their bank or lender to decide their fate. And if, after spending many sleepless months and a considerable amount of money on postage and documentation fees, they end up getting rejected, well…let’s just say from experience how frustrating that can be. And that’s why a person should use an online software that helps other homeowners understand their options, negotiate better with their bank or lender, and address the many challenges of applying for a loan modification. How, exactly, does it work? Read on.

How A Loan Modification Software Can Help You

1: It tells you upfront whether or not you pre-qualify to modify your loan.

When you input information regarding your loan and finances into the system, the software provides you with a possible loan modification workout that shows you whether or not you “pre-qualify” under the government’s HAMP guidelines and under private loan modification guidelines. Those who pre-qualify can confidently proceed with sending their application to their lender. Those who don’t can explore other loan scenarios using the software, and work on fine-tuning their budgets and finances accordingly. Of course, they could also choose to send their application to their lender even if they don’t pre-qualify, but they may have to keep their expectations low and realistic. And knowing what one can expect and what one’s financial data looks like to a lender is a key advantage of using the loan modification software.

2: It gives you access to proven tips, guidelines and other useful information.

THe software containing a lot of research on loan modifications-what kind of documents and forms you’ll need, what guidelines you should follow, what the different financial terms mean, how lenders calculate loan modification workouts, and the like. All of the tips are shared with you, including best practices based on other homeowners’ experiences. For instance, once your bank has received your paperwork, you should ask them to assign you a representative to your case, so you won’t get bounced from one department to another every time you follow-up with your application. Be prepared, as well, to answer detailed questions and to clarify items on your tax returns and bank statements. But also know when to push back-sometimes, underwriters ask for clarifications that may not be applicable to your case. They are dealing with lots of paperwork and can make mistakes.

3: It “demystifies” the financial calculations used by your lender when deciding whether or not to approve your loan modification request.

The software doesn’t just tell you what documents you’ll need and how to organize them for maximum efficiency, but it will also help you prepare your financial worksheet. This worksheet is probably the most important criteria in getting your loan modification approved (provided, of course, that you can validate what you are claiming on it) because it will help you understand how banks analyze and calculate your financial data, and how they decide on whether or not to approve your request. And if you know what your bank knows, you’ll be able to negotiate better with them!

4: It streamlines-and simplifies-the application process.

The software provides you with a step-by-step guide to completing your application, from beginning to end, so you’re well prepared once you are ready to submit your application to your lender.

5: You avoid “applying in the dark.”

Using the knowledge and tools, you’ll be optimizing your chances for success and will likely avoid the many challenges and headaches inherent in the loan modification process. But you don’t have to take my word for it…why don’t you take a look around and give it a try?

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