Legal Advice During Challenging Times


On Behalf of | Jul 27, 2015 | Laws & Rights |

For a loan modification, you will need to bring to your attorney all the documents that substantiate what your current income and expenses are so that your case can be evaluated and a proposed new payment be assessed by your lender.


The primary document that must be prepared for this process is a Request for Mortgage Assistance form (commonly referred to as an RMA). This form can be obtained from your bank or from the federal government’s HAMP/HARP website. In addition you will need to have your recent tax returns, pay stubs, bank statements, so that the bank can verify your income. All of these documents will be used to fill out the RMA form needed to make your loan modification proposal.

These forms, along with all your supporting documents, including a hardship letter/statement must be forwarded to your lender for review and approval.

Usually, the lender will respond with a request for more information and/or updated bank statements, pay stubs, or tax returns. This can go on for years, believe it or not!

Typically your proposed loan payment cannot exceed 31% of your gross income. This includes any rental income you might have, so you will also need to provide copies of any leases in which you are the landlord.

However, in order to ensure this, you should propose a reduced interest rate and even areduction in principal. I have had recent success with significant principal reductions.

Either one or both of these proposals might be accepted and your payment greatly reduced.

Past due payments are usually tacked on to the back end of your mortgage. In some cases you can even obtain a forgiveness of past due amounts as part of your modification.

Usually your initial modification will be on a temporary basis of four to six months. Then, if you successfully make all of those payments ON TIME, you will be approved for a permanent modification.

If you have tried unsuccessfully to obtain a modification on your own or with someone else’s assistance, it may still be possible to obtain a loan modification with an experienced attorney such as Mr. Montero.

This is why you need representation. Call the offices of Franklin S. Montero or (fill out forms online)