Home Loan Modification - You Are in the Driver's Seat

As long as you don't have some weird loan through a local bank, then you should be safe. As long as you try to get a home loan modification from one of the bigger financial institutions, you should be fine (Bank of America, Chase, Wells Fargo, etc). Other than that, you just have to send in your last 2 years tax returns, what you spend on goods and services monthly, etc.

After sending in those documents, you have to write a letter of hardship. Basically, just bellyache through the whole thing about how you lost job or income and how you are at your wits end. I know because I went through this process and got approved; however, I was hired on to a better job right before the approval that raised my income above 31% of my gross income, so I didn't end up going through with it. I was pretty stressed out beforehand, and I thought I would be facing foreclosure.

The bottom line is, there are an estimated 9 million households supposedly heading towards foreclosure within the next 3 years. There are only 40 million mortgages in the United States. That means 1 out of 4 homeowners is in this position, or will be in the near future. So don't feel bad about it. If I were in a poker game right now, I would bet the bank is not going to foreclose on ANYONE. They can't kick 9 million people out of their homes or there would be mass chaos. YOU are in the driver seat, not them--Home Loan Modification.