Information Your Lender May Need to Approve a Loan Modification
Your lender’s acceptance of any modification to the provisions of your mortgage is voluntary and may hinge on several important facts about you and your financial situation. Ultimately, your lender will want to evaluate whether a loan modification will ensure consistent payments toward your mortgage going forward.
This means you may need to provide detailed documentation to demonstrate the following:
- Financial Hardship: If you lost a job, had unexpected medical bills, or experienced another form of financial hardship, your lender will need to see proof of it.
- Current Income: Your household’s current gross income is key to helping your lender understand your need for a loan modification. If you simply cannot afford it with your current income, you will need to demonstrate this with official paystubs or other formal documentation.
- Account Balances: Your lender will want to understand the scope of the financial resources currently available to you. That means providing documentation of all bank accounts in your name and their balances.
- Additional Mortgages: If you already have a second mortgage on your home, your bank will want to review these terms.
- Additional Debts: Your financial hardship may extend to unsecured debts such as credit card bills, medical bills, personal loans, student loans, and more.
