- 1). Get all of your financial information together. Before contacting your bank, you will want to have all of your relevant information in front of you. Gather your bank statements, loan information, pay stubs from the past 6 months and tax returns from the last 2 years.
- 2). Find your lender's contact information. You will be contacting the lender directly, not a broker or the mortgage company that helped you set up the loan. Many banks, like Chase, have a separate phone number set up for loan modification questions. Go online to find the loan modification helpline for your lender. Call your bank.
- 3). Explain your situation to the representative. Start by saying that you are interested in learning if you qualify for a loan modification. Explain briefly your financial hardship, whether it is a lost job or other circumstance. The representative on the phone will ask you questions to determine if you qualify and will mail you further paperwork to process your application.
- 4). Fill out all the paperwork carefully. Make sure that you keep a copy of everything you send to the bank. Make note of what day you mailed the paperwork. Call the lender if you are at all unclear about the paperwork.
- 5). Make payments. Processing and approving your paperwork may take 2 to 3 months. Work with your lender to understand what payment they expect you to make during this time. Don't miss a payment, as it will impact your credit and may jeopardize your ability to obtain a loan modification.
- 6). Read the loan modification carefully. Understand how your payments will step up over time. Step payment mortgages will increase based on a specified time line. Have a plan in place for paying the increased payment when your rate increases.
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