Stop Foreclosure Answer

Your mortgage company has started foreclosure on your mortgage.  You have looked at your options and have decided that you would like to see if your mortgage company will modify your mortgage.  You wonder what your mortgage company is going to ask you to provide to them.

 

The majority of mortgage companies are going to ask for similar information.  Some have an application right on their website that you can print off.  If your company does not have the application on their website, call their phone number on the monthly statement you get from them.  Ask a customer service representative to send one to you.

 

The first item all are going to ask for is a letter or statement from you in which you explain what caused your financial crisis.  Be as detailed, honest and open in this as you can.  Explain not only what happened but also add in the way things are right now.

 

If you lost your job and you had minimal savings to tide you over, say that.  If you are still unemployed, don’t say that you hope that things turn around and that you hope to find a job in the next two weeks.  Jobs right now are tight.  It may take you a long time to find a job.  If you do find a job while your application is being processed, you can let your mortgage company know then.

 

If your financial crisis was caused by mounting medical bills which you or as family member were charged for treatment of a serious illness, explain that.  You might want to let them know the total of those bills and how much you still owe.  Those bills won’t appear on your credit report. Your mortgage company won’t know anything at all about them unless you tell them.  If the medical bills are still mounting, let them know that.

 

If your financial crisis was caused by a divorce or death of a family member, explain how that caused you to fall behind on paying your bills.  Here again it is better to tell as much as you can.

 

Your mortgage company will want 2 current pay stubs from you and anyone else on the mortgage if you and they are working.  If either you or they are receiving Social Security or pension benefits, you will have to let them know this.  The same is true if you are receiving Social Security Disability, alimony, maintenance or child support payments.

 

If you are self employed, most probably you will have to send copies of your tax returns for the last 2 years.

 

Your mortgage company will also want to know what assets you have.  So you will have to submit a copy of the monthly statement on your checking and savings accounts.  If you have a 401k or IRA, you will have to include a copy of your most recent quarterly statement on that account.  If you have any investments, you will need to submit a current statement on these.

 

They are going to ask for the value of any homes you owned.  Here you can estimate the value.  The balances and monthly payments on any mortgages you have on properties that you own will appear on your credit report.

 

Most probably your mortgage company will ask you for the value on any automobiles, boats or other recreational vehicles you own.  Here just estimate what they may be worth.

 

The last thing they are going to ask you for is to itemize your debt.  Remember that they are going to get a credit report on you.  That report most probably will detail how much you still owe on any automobiles, student loans and credit cards that you have.

 

Your credit report won’t have anything about how much your insurance costs you annually.  So make sure that you include what your annual bill is for insurance on your autos, home and recreational vehicles.  If you pay for your medical insurance, include that.  Also include the premium on any life insurance and disability policies that you may have.

 

Indicate what the balance is on any outstanding medical bills you have.  If you or a family member are receiving ongoing treatment for a medical condition on a regular basis and you know what the charge for that is, indicate that.

 

If you are paying child support, alimony or maintenance, indicate how much you pay and how frequently.

 

Indicate what you pay monthly for food and utilities (water, gas and electricity)

 

Also include what you pay monthly for your phone telephone and internet connection.

 

As you can see, your mortgage company is going to require a comprehensive listing of your income, assets and debts.

 

Many people are intimidated when they see the form they are required to complete.  They are unsure of what to say.  Some include just a fraction of their actual expenses and they jeopardize their chances of getting a modification.

 

If you want to get your monthly mortgage payment and the terms of your mortgage modified, I recommend that you get a lawyer or an expert in this field help you.  They have helped many people in situations like yours and know what the mortgage companies require.   They can guide you in completing the application or tell you what information they need from you and complete it for you.

 

Much Success,

 

Mark Elkins