7 Insider Mortgage Modification Secrets. Want Mortgage Modification Secrets from the Inside?

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UPDATED 7/1/10

I am about to unleash all the insider secrets in one concentrated list, which after writing it I determined I probably giving away WAY too much, but here ya go anyway. Use it well!

If you find this too advanced please refer to our other posts specifically, Mortgage Loan Modification, which shows you the steps and qualifying factors. For a step-by-step guide with all the forms, worksheets, examples, and details you should buy our complete Mortgage Modification Guide.

This assumes you are in the middle of a Loan Modification now or just getting started and have at least some knowledge of what it is going to take to battle it out with your lender. These are the secrets and formulas to each step you NEED to know in order to get your mortgage modification approved.  This summarizes all the detailed points in our book, and will get you pointed in the right direction if you are not already or for some of you give you all you need to get your loan modification negotiated and approved. If you need more detail please buy the Mortgage Modification Guide.

1. Home Value: Using online resources show them the house is worth less than their mortgage balance. They will order their own appraisal but having a point to argue from is important when the time comes.
2. Hardship letter: For a limited time I give you up everything you need to know about writing your hardship with examples for FREE here: Loan Modification Hardship. Just provide your name and email on that webpage at the top left and its yours.
3. Mortgage Debt to Income Ratio: HAMP program wants to see that your housing cost does not exceed 31% of your gross income. If it currently does you need to show them what the payment will be at 31% and ask for that payment in your modification proposal. They can do this several ways whether it be rate reduction, principal reduction, changing the term, or combination of all.
4. Income and expense: You want to show your income and expenses and what your disposable income is after the expenses are deducted. Your expenses should be detailed, which means you should have about 15+ lines of expenses.
5. Disposable income: Needs to be about 3% of your gross income. Example: Income $5,000/Mo. X 97% = $4,850. This means you have 3% left over or $150/Mo.
6. Tracking and communication: Track every call you make, time and date, who you talked to in what department, phone number, and fax number for that dept. Before allowing someone to transfer you, share with them the number you called and who gave you the number from their department. Sometimes they are just trying to pass you onto someone else when they can probably help you themselves…..sometimes.
7. Negotiation: When you get your terms back from them, or they decline it, be prepared to have a couple of better options ready to throw out at them (better for you that is). If they decline you, you need to know why, specifically. Do not take no for an answer and ask them where you can resubmit the application and what will be needed to get approved.

For a detailed, to-the-point Guide on how to modify your own loan that puts all the above together and much more go to our Mortgage Modification web page. Our guide is all the help you need, with paying anyone, to get your mortgage modification done quickly and correctly by yourself.