ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How To Get Your Loan Modification Approved

Updated on May 5, 2011

A loan modification is a not so easy thing to get as recent government case studies have shown. Even though there is big government push for help, the data suggest more people are being left out in the cold. Mortgage lenders just don't have their act together so it's up to homeowners to get there ducks in a row.

To get a loan modification approved you must demonstrate a real financial need to qualify, and you will be required to provide documentation to support your request for a loan modification on your mortgage. Here are seven steps to get you going along the way. Do not skip any of these, especially the seventh step, because this is the one that can really make a difference.

Your overall strategy is to prove to the lender that you are in fact in need of help but can and will have the means to continue payment on the new loan modification agreement. You will be required to complete a financial form, listing all forms of income and your monthly debt obligations such as credit cards, car loans, utilities, etc. A quick analysis of your debt to income ratio (gross monthly income divided by your total monthly obligations) will give your mortgage lender a clearer picture of your current financial position.

Unfortunately, most mortgage lenders will not consider a loan modification request until the debtor is severely delinquent on their current mortgage, which often begins when the mortgage is more than 90 days delinquent (not always true).

My first suggestion is that you get a loan modification attorney. Although this is not required, my personal opinion is that an attorney will do a much better job fighting those monsters than you ever will. Also, make sure you call an actual attorney firm and not some fly by night scam artist representing themselves otherwise. You can simply Google the words "loan modification attorney" to get help.

7 Steps To Get Your Loan Modification Approved

1. Describe how the borrower got in trouble. Provide a loan hardship letter. What caused the borrower to fall behind in his mortgage payments? Give as much detail as possible. Did the payment amount recently reset on his or her ARM mortgage to a higher monthly payment? Did your borrower suffer a loss of a job or lengthy illness? Did your borrower go through a separation from his or her spouse and now only one person's income is being used to make the payment?

2. Express your borrower's desire to keep his or her home and to make the modified payment in the future. Tell a story that convinces the lender that the borrower will pay on the modified payment terms in order to keep their home for the long term.

3. List borrower's attempts to sell the property if any.

4. Describe the occurrence of recent events that will help the borrower make the modified payment. Did the borrower regain employment recently? Did the borrower just now recover from an illness and is back to work?

5. Make a statement regarding how the proposed modification will improve the situation for the lender. For example, without this modification, your client will lose his property in foreclosure and the lender will have to take extreme losses by selling the home in this market.

6. List your expenses correctly. Although I put this at number six, it is one of the most important parts of the process. The first five above are part of your sob story to win them over. Now, you go for the jugular with the numbers. You have to prove your situation by documenting all of your expenses and show how a lower mortgage payment will help your family and put you in a better financial position to payback the loan they originally gave to you. Find out what it takes to be offered a beneficial mortgage modification. Sometimes they will tell you exactly what you need to do and exactly what they are looking for, then you can have your attorney do the paperwork for you.

Second mortgages are more vulnerable to loss of their position if the home goes to foreclosure auction. First mortgages have first claim on the money generated at the sale. Bids usually do not go high enough to pay the second mortgage any of the proceeds. This means that they would far rather offer a loan modification than receive nothing from a foreclosure sale. It may be that a loan modification could indeed save your home and your credit. To say that it is more than worth it to find out if you can get one, would be the understatement of the decade. Call, talk, plead, see what kind of deal you can get from your mortgage lender.

7. Important Step - Get A Free Copy of Your Credit Report for Validation

It is extremely important that you have a copy of your credit report to compare with your lender. I am getting a lot of people tell me that there are mistakes with the lender's credit report. This is a problem because their decision on approving your loan modification is dependent on certain variables on your credit report. A lender looking at your debt to income ratio to make there final decision could mean the difference in approval and the final payment program they offer you in the process. So, if you have your own copy of your credit report you can disarm any false information they are hitting you with and forward a copy to your attorney.

Don't Stress About Your Loan Modification Approval


    0 of 8192 characters used
    Post Comment

    • monicamelendez profile image


      6 years ago from Salt Lake City

      Do you know what the odds look like when you're trying to get a loan mod? I don't know at all - just curious. I've heard that it's really difficult to get a mod approved but at the same time, I know some people who were able to pull it off so it's definitely possible.

    • rickzepeda profile imageAUTHOR


      6 years ago

      Hmmm, Barb, contact a loan modification attorney, not just anyone doing loan modifications. If you are put on the loan you could be responsible for that debt until it is paid off. If you are not married is that something you want to do? It sounds fishy lots of scams going around. Get solid advice, contact an attorney.

    • profile image


      6 years ago

      My boyfriend is considering a loan modification. He is the sole person on the loan. By me living with him, does that mean that my income has to be reported to the bank as well. My income barely contributes to the mortgage payments which are in default. He was also told that because I live here, in order for the modification to get started he has to add my name to the loan. Can someone please help us quickly!!! I think someone is trying to take us for a ride!!! This is very urgent! Please respond quickly. We need a smoking gun to win this battle.

    • profile image


      6 years ago

      @ Regina, you need to have a rest report done, to see if you qualify, the numbers have to be just so! go to sign in, and look at the forums there

    • profile image

      Regina Rodriguez 

      6 years ago

      I have been denied twice for a loan mod. One for making to little of money second for making too much money. I dont know what kind figures they are looking for. How much is to much and how much is to little? Please somebody give some answers

    • profile image


      6 years ago

      i believe those pepole who got there lone mod thay had insider connection like insider friends and family

      just that what i believe

    • profile image


      7 years ago

      My husband is a union construction worker and his income varies week to week. It's hard to be exact with our income monthly. What is the best way to fill the income & expense forms out correctly? Also, I was wondering what is it they are looking for? I have been filling out forms for over a year now and I'm so confused and ready to give up. Chase Mortgage keeps stringing me along and losing my documents for some reason. We were initially rejected because we were current on our loan However, we knew he was going to have reduced hours, I was getting ready to have my first child (at age 36) and became disabled from carrying her due to health problems. We tried working with them in advance and were turned down for being current. Now we are 3 months behind and still trying to get approved. They need us to fill out a current income & debt form and I don't even know what to write anymore. If anyone has any ideas, please help.. Thank you

    • profile image

      Ms S 

      7 years ago

      Thank you so much M72. The info was so helpful. I made the mistake of following varied advice from the pay not to pay and how much to pay. Trying for a mod for the last 6 months. I was just asking them to add the arrears to the principle and extend the loan by the 3 months late. I'm just going to start making my payments on the original due dates since I can afford to start making regular payments now, I just don't have 3 months of payments on hand. I will see what happens. Thx again.

    • profile image


      8 years ago


      * make sure to make your payment every month on the same date so u do not get kicked off.One day late can kick u off!

      * Even if you are not on a trial program keep making those payments!”even if your banker tells you NOT too!”(I am lucky that i have been advised by decent banker from the Chase Corporate Branch)after 20 debt-collector- bankers telling me the wrong things for almost a year. Now I know what is expected going through this long- stressful- process!

      * If you can now make your payments again,always pay an extra dollar or more-it shows the bank u are able to pay.

      * If the bank will not take your payment at the branch do a WESTERN UNION QUICK COLLECT-those usually always go through.The fee for Quick Collect is $12.99

      * You are more likely to get approved if you show that you can make your payments again.If you are needing a lower payment and cannot keep up with the payments at this time,thinks may still work out but i would have a back up plan just in case they do not.

      *When you do fax all the paperwork FAX FOR FREE AT YOUR LOCAL BANK BRANCH.It is free and since it is Bank BUSINESS they HAVE TO DO IT even if they act rude towards you go to the next teller.

      *If you don’t have a printer or do not want to use up all your printer ink go to the LIBRARY ,use the library computer for FREE and print everything out for 5-10 cents a copy.AVOID KINKOS at all cost unless you don’t mind paying them for something you can do for free!

      *If you need to prove income and you are in a $CASH business now-so many people are like NEVER before(dog groomers,bartenders,car washers ect.)You must open up a checking account and put your cash pay in there every week so it CAN be documented.Put it in and take it right back put if you need it right then.Other wise you will not get approved just by stating your income or a letter from your boss saying that you work for him/her.


    • profile image


      8 years ago

      i ned to know what question we vana sk the customers who are looking for a mortgage modification loan

    • Andy471 profile image


      8 years ago

      Nice Hub. I will use your information. It was helpful. Thank you.

    • profile image

      Expenses claim form 

      8 years ago

      Nice site nice thoughts dear you sharing a lots of of thing.

    • profile image

      SurePath Financial Solutions 

      8 years ago

      You can get FREE loan modification assitance through HUD approved counseling agencies like SurePath.

    • profile image

      Mrs G Alter 

      8 years ago

      Hello, I'm Gina Alter i got my Loan from Clarkson Investment Company and right now i have my Own Business, you can get a good Loan from them aswell, you can contact them at


      Mrs Gina Alter.

    • profile image

      Tips for loan modification 

      9 years ago

      The best way to get a loan modification approved is to take the situation seriously, which means to only opt for a loan modification unless you absolutely have no choice. Just my opinion

    • profile image


      9 years ago

      We've been working on several loan modifications and went through hfa loan modification and paying and officer over 2 thousand to help us...but there is no positive response yet! what should i werry about?

    • profile image


      9 years ago

      If I have a cash income that I did not claim taxes on but my income has decreased what do I do

    • profile image

      Loan Modification Attroney 

      9 years ago

      Do not you think that a loan modification attorney can help better in this case ? just an idea :-)


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)