Typical Bank Loan Modification Process
Typical Bank Loan Modification Process
Typical Bank Loan Modification Process
A loan modification is a change to the loan terms that is agreed to by and between the lender and the homeowner. The lender will modify the existing loan(s) in order to work with the homeowner because of a hardship. The purpose is to help make the loan(s) more affordable. Usually loan modifications are in the form of a rate reduction and/or fixing the rate for a certain period of time and/or even lowering your principal balance in extreme cases. In the past, loan modifications were only utilized when a borrower was delinquent and suffered a hardship such as a job loss, divorce, or illness. Borrowers can even obtain modifications from their lender to convert to a fixed rate loan from an adjustable rate mortgage.

The earlier the homeowner addresses the issue, the better the chances are of negotiating a lower fixed rate and a payment that is manageable. If the household can afford the home, but not their current mortgage, then they may be eligible for a loan modification. A key factor that is required in every loan modification submission is the existence of some type of a hardship. The hardship can be temporary in nature or permanent, but the borrower must be able to prove the hardship.

The following are a sample of hardships that may get a loan modification request approved:

1. Adjustable Rate Mortgage has re-set (causing an increase in the monthly payments)

2. Illness to yourself or family member

3. Loss of Income or Reduction of Income

4. Loss of Job, changing of jobs

5. Damage to the Property

6. Unable to sell the Property

7. Failed Business

8. Job Relocation

9. Death of a Spouse or a family member

10. Incarceration

11. Divorce or Separation

We know how serious your situation is, and how important your home is. This is why it is very important to work with experts to resolve your situation with the best options available as soon as possible. Please review the steps below:

STEP 1 - CONSULTATION

Please give EPIC Brokers a call @ 510-742-0700 to start your initial consultation. We have expert brokers who have done hundreds of files. We need to talk to you to make sure that a Loan Modification is your best option.

STEP 2 - GATHER FINANCIAL DOCUMENTS

We will need the following documents:

    Hardship Letter
    Most Recent Mortgage Statement
    Last 4 Bank Statements
    W2 Forms (2 Recent Years)
    Tax Returns (2 Recent Years)
    Income/Expense Financial Statement

Then, we will analyze your information to create a negotiation packet to submit to your lender. We will fully review your case before we start negotiations. NOTE: This process could take up to 45 days to be completed depending how fast you provide us with all necessary information.

 
STEP 3 - NEGOTIATIONS

EPIC Brokers team will submit your financial packet to your bank and will start negotiations. Negotiations will continue until we achieve an acceptable agreement approved by you, the homeowner.


STEP 4 - APPROVAL

When you modification request is approved, all final modification documents will be sent to you to get your approval.


Remember, this will not happen overnight, however, in most cases it takes 30 to 60 days to complete the process. We are here to assist you at all times.


Call us to get more detailed information at 510-742-0700