Common Mortgage Modification Mistakes Part One
Filed under Mortgages
With the housing crisis at it’s peak and still building momentum all over the country, having a successful mortgage modification has become one of the last sources of hope left. Having modifications as your last course of action to keep your payment low and keep your home from being foreclosed isn’t easy. If your home is being foreclosed on and you have to act fast, I suggest you do a loan modification as your one shot chance at saving your home from being taken and you being forced to move. Below are five of the most common mistakes homeowners make that can result in a slow approval or a complete denial:
Unrealistic expectations: If you’re already falling behind on your mortgage payments and you don’t think you’ll get a better paying job soon, you’ll have to realize that the problem isn’t going to go away magically. Begin putting the modification paperwork together before you need it urgently and start preparing now.
Lying: The new 4506-t form will allow the lender to pull all your tax returns you’ve filed and they will be able to compare them to the one’s you gave them. Lying in the modification application will get you denied faster than you think. You must be clear and honest, otherwise you risk losing the opportunity of keeping a low interest rate, a low monthly payment, and most importantly, keeping your house.