 Processing a loan modification file is very similar to processing a mortgage loan, and even more similar to processing a short sale package, if you are familiar with either of those processes. Basically, you provide Dynamic Loan Solutions with all of your income and expense information and submit it to our lender's loss mitigation department in one complete package. If you don't include everything in the original package, however, you could seriously jeopardize your chances for a successful modification.
The first thing you need to know is that you cannot forget to write the loan number on every single individual page within the submission, because the lender may easily misplace any page that does not have a loan number written on it.
But what needs to be included in the submission? You will need to collect and send the following documentation to us. After we receive a signed contract, a financial statement, the loan modification fee and the documentation below, Our team will present your case to your lender.
Loan Modification Package:
- Cover letter, stating what's in the submission package
- Client Authorization Form, signed by all borrowers, one for each different lender (if more than one)
- IRS Form 4506 - T, Request for Transcript of Tax Return, one for each borrower
- Two months' worth of paystubs, all borrowers
- The last two years' tax returns, all borrowers
- Year-to-date Profit and Loss statements for each business owned (self-employed and entrepreneur borrowers only)
- Hardship letter
- Schedule of Real Estate Owned, especially if they own more than one home
- 1003 Loan Application
- Recent appraisal or county property value assessment
- Copy of personal budget for all borrowers, including everything from debt payments to utility bills, from the monthly food budget to gym membership dues, and everything else the client's spends money on
- All necessary documentation you'll send directly to Dynamic Loan Solutions via fax and/or overnight certified delivery.
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Documentation