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How to Apply for a Loan Modification Successfully?

March 28, 2020   Personal Loan

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?

For more information, please visit

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So You Want to Apply for a Loan Modification?

March 25, 2020   Personal Loan

How hard is it to apply for a loan modification? A lot harder than it should be. Lots of people online share their loan modification stories. Some were their own, while others were their friends. But they all shared a common theme: They all went through a process that is daunting, ambiguous, emotional and sometimes, even humiliating. Humiliating because even after following all the instructions and spending considerable time, effort and money on their applications, many underwater homeowners find themselves in “mortgage limbo,” not knowing whether or not they’ll get to keep the roof over their heads. Here are a set of example of most common challenges.

The Challenges

1: Not knowing whether or not you pre-qualify. Let’s first look at what happens when you want to buy a property. You get in touch with your mortgage broker or bank, and once you answer a set of pre-approval questions and submit the supporting documents, your bank tells you upfront whether you’re pre-approved, how much house you can afford based on your income, what guidelines you should follow, and other useful information. The same, however, is not true when you’re trying to modify your loan. You still have to answer a set of questions to determine whether you meet the minimum eligibility requirements, and you still need to submit the necessary paperwork, but your bank won’t tell you upfront whether or not you actually pre-qualify. Often, they won’t even tell you in a timely manner (in my case, it took seven months before my bank got back to me). I’m not talking about the time it takes to verify your documents-banks and lenders should and will take time to validate what you have declared. But underwater homeowners who are applying for a loan modification shouldn’t be put in a “guessing” position where they have to wait months just to find out whether they’re pre-approved, right?

2: Getting the run-around when you follow-up. When you apply for a new loan or refinance your current one, you’ll typically work with one person and, typically, you’ll be given their full name, email address and telephone number. But that’s not the case when you apply for a loan modification-at least not until you get assigned to a “negotiator” who will mediate between you and the underwriter. Before that happens, you’ll likely spend months dialing 800 numbers and getting re-routed from one department to another, always talking to a different person and having to explain your case each time.

3: Encountering inconsistencies throughout the whole process. If and before you get assigned a “negotiator” to your case, you may get inconsistent and ambiguous answers whenever you call your bank to know the status of your application. Sure, one can say that because loan modification programs are relatively new, it takes time for banks to optimize their operations. But the lack of transparency, clarity and communication still results in a highly frustrating experience for homeowners.

4: Having to prepare a ton of paperwork. While you can look at the government’s Making Home Affordable site and other resources to get a good idea of what documents and forms you’ll need, often, that won’t be enough. Your paperwork and data will be scrutinized-in minute detail-for anything and everything that the underwriter isn’t clear about.

5: What I call, “applying in the dark.” A user wrote me the following: “They said it didn’t look good for a loan mod, but they wouldn’t tell me what their criteria are.” It’s a common story-most homeowners couldn’t get specific information from their bank or lender on what they need to be able to qualify. And that’s really the crucial point, isn’t it? What most, if not all, homeowners want is an honest answer in a timely manner so they could take appropriate action, and if necessary, fixed what needs to be fixed to get their finances-and their lives-in order. But when your bank isn’t giving you feedback regarding your application, even after months of waiting, it’s a one-way street and you’re left “in the dark,” feeling powerless.

So what can you do? There is an online software solution that can help you address the challenges; additionally, it helps you understand your options and negotiate better with your bank or lender.

For more information about mortgage loan modification, please visit us at

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