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Loan Modification:

A Loan Modification is the process of modifying one or more of the terms of your existing loan to make your payments more affordable.  The purpose of a loan modification is to provide you with a mortgage payment that you can afford.

Loan modifications stop foreclosure proceedings and instead reinstate the loans as they are being modified.

Lenders are actually in favor of working with you and authorized representative in order to negotiate equitable loan modifications because all or portion of the outstanding principal and interest, past due escrow, late fees, and even costs may be rolled into the loan modification and thus will not be lost revenue to the lender and since they are spread over a long period of time, they do not pose a problem to the borrower.
Also, loan modification avoids foreclosure and even though banks routinely foreclose on properties and sell the homes, the slowing housing market has made it difficult for banks to sell such properties. In short, lenders are in the business of lending money not selling homes.
A modified loan protects the credit rating of a borrower and it also helps lenders in showing less defaulting loans in their portfolio. This of course makes a good impression when the financial institution is wooing potential investors.

What we need from you to start the process:

  • Hardship Letter - Indicate changes in your financial situation that resulted in delinquency, include any supporting documents if possible. While we will be happy to provide guidance if needed, the short and straightforward letter must be in your own words.

  • Mortgage statement for your current loan.

  • Bank Statements for the last two months.

  • Detail list of all your monthly expenses.

  • Pay stubs for the last two months; if Self-employed - 1040s for the last two years.

  • Tax Returns and W2s for the last two years.

  •  Rental Agreement, if the loan modification is for a rental property.




Trykada Realty and Mortgage - Phone: 408.871.7735 - Fax: 408.228.8971