Honesty is the Best Policy
In the application process, one will need to fill up a lot of forms that require information to be given to the bank or lender. Do not even think about second guessing these information or embellishing them. Be honest, there is no other way to be. Even if it is so tempting to add a few more numbers on those amounts or subtract a few if you think that will increase your chances of getting approved for loan modification. This will make the processing go much smoother and faster. One needs to be absolutely precise. Otherwise, you will just really embarrass yourself because the lender will find you out. It is also detrimental for your application to lie because putting in unrealistic numbers will also give the lender reason not to approve your loan modification since you may not be able to afford it anyway despite the modifications. There are some shameful facts that some people will try to hide, but hiding these things will only cause a spectacular backfire.

Here is all the required data that will need to be straightforward and precise. 1. Information about one’s monthly income (gross income) with a pay slip as well as some proof if one’s income is gotten from other places. 2. Assets and other bank savings information. 3. Up to date income tax return documents. 4. Original or first mortgage information. 5. Any second mortgage or home equity credit.

The Proper Way of Writing the Hardship Letter
The borrower will have to write a letter explaining why he or she needs to have a loan modification. This letter will fully and precisely explain the conditions surrounding the borrower’s financial situation and needs. It should be both complete and to the point. It is very important that the letter is written in the best way possible. The letter should be able to make the lender understand your situation clearly and understand it right away. Remember that there are so many people applying for the very same modification of loans and they will have to sift and read through a lot of these letters.

The lender should not misunderstand. Some mistakes for example go like this: The borrower says that the reason why they are behind is because he or she had an accident on June but then records show that the family had been falling behind the payments earlier than that. This will make the borrower think of the worst case lying scenario with such questions in the air.

More on Loan Modification Tips here.