Any one can modify there own mortgage, it is free of change. There are simple steps to follow to get your loan modified.
First you have to call your bank (where your mortgage is held) and ask for the loan modification department. Tell them your situation and ask them for help.
The bank will make sure that you meet a certain criteria and send you loan modification documents. Make sure that you get these documents back to them ASAP.
The bank will determine weather you qualify for a loan modification and will want you to meet one of the following criteria:
1) Owing more than the house is worth and you can't refinance
2) Lost your job and can no longer afford your payments
3) Have an ‘Option ARM’ from a lender like Countrywide or Washington Mutual
4) Have missed two or more payments
Depending on your situation you can expect one of the following from a loan modification:
1) The bank ‘writes-down’ the balance of your loan to a percentage of the home’s current value. If the values in your market have tumbled, the lender may forgive a portion of your loan balance.
2) The bank may offer lower interest rates, especially to people who are stuck in Adjustable rate mortgages with high rates.
Things you will need:
1. Hardship Letter (Job loss, reduction in income, Adjustable Rate Mortgage).
2. Bank statements
3. Pay Stubs
4. Monthly Expense Statement; (utilities, food, clothing, medical, gas, credit card, taxes, mortgage, etc...
You may need up to 2 hours on the phone.
Remember, you have the right to contact your lender and ask about a loan modification. You don’t have to pay for a third party company to negotiate your modification for you.