Debt Consolidation Credit Counseling In Phoenix

If you want to handle the loan modification process yourself, you have to know what to do, but more importantly, what not to do! Let's look at a few things you should never do when preparing your loan modification application.

Mistake: Talking with the wrong person. If you get called at home by someone from the collections department, don't start talking to them about mortgage loan modification. Then can not and will not help you. They may say that they will help you if you pay up, but in reality they can't help you. Speak with the correct department at your lender's office instead.

Mistake: Not studying the mortgage loan modification process before starting your application. You have to make sure that you understand the necessary paperwork and that you know what to say and what not to say on a mortgage loan application form. If you don't take the time to learn the ropes, there's a big chance you will be denied mortgage loan modification.

Mistake: Not being completely truthful on your application form. This will get you in trouble. Many people fail to realize that a lender WILL check up on the facts provided on a mortgage loan modification application. If you get caught, you will immediately lose all chances of getting your mortgage loan modification accepted.

Mistake: Paying a big upfront fee to your mortgage loan modification company without checking their credentials. Because of the rise of foreclosures these days, there are a lot of mortgage loan modification companies rushing into the market. Some of these companies are not very qualified to handle your mortgage loan modification. You need to make sure that you're dealing with a qualified, reputable company before paying them a dime. Mortgage loan modification should get you out of financial hardship, not deeper in the hole.

Mistake: Trying to piece together a loan workout that doesn't meet the approval criteria of your lender. This shows the lender that you did not take the time to go through the paperwork and you did not read up on the approval criteria. This is one of the quickest ways to get your application denied, so take the time to read up on the approval criteria.

If you make sure you don't make the mistakes we've outlined in this article, your application will look good to a lender. It doesn't guarantee approval, but it vastly increases your chances. Good luck!