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What Information Will I Have to Provide to My Lender When Applying for a Loan Modification?



When applying for a mortgage modification, you'll have to provide a lot of documentation to your lender. A loan modification attorney can help you collect the necessary information.

Mortgage Modification Documentation

Each lender has its own list of documentation that must be submitted when applying for a loan modification. You may be asked to submit:

  • Copies of the original loan documentation
  • Current mortgage information
  • Details about your property, including whether it's your primary residence, the current property value (including documentation substantiating the current value, such as a recent assessment or sales listings of comparable properties) and whether the property is currently for sale
  • Information substantiating your current income (such as recent tax returns or paycheck stubs) and asset information (such as bank and brokerage statements)
  • Information about any financial hardship you are currently suffering
  • Information about your fixed monthly expenses and other details that affect your ability to repay the loan

This information is used to determine whether you are eligible for a mortgage modification. According to the U.S. Department of Housing & Urban Development:

"Lenders are to use specific financial analysis criteria when determining a Borrower's eligibility for the Loan Modification Option: 1) The Borrower's surplus income is at least the greater of $300 and 15% of net monthly income, 2) 85% of the Borrower's surplus income is insufficient to cure arrearages within 6 months, and 3) The Borrower's monthly PITI [principal, interest, taxes and insurance] mortgage payment can be reduced by the greater of 10% of the original monthly mortgage payment amount and $100, as a result of the Lender setting the interest rate at the Market Rate and amortizing the new loan over 30 years."

Visit LawyerLocator to learn more about loan modification law or to locate a loan modification attorney in your area.