Here is a list of the items you will need to approach your bank to do a loan modification.
1. Last 2 paystubs.
2. Last 2 tax returns. (Federal and State)
3. Last 2 Bank Statements. (If you have mulitple accounts then the one you deposit your check into.)
4. Hardship Letter. This should hit the broad strokes and sum up the reason you will not be able to continue making your house payment if it is not adjusted.
Now that you have gathered this information you will be submitting it to your bank by faxing and mailing the request. Just call your bank and ask for assistance in modifying your loan and ask for there fax # and mailing address.
It is common to not hear back from your bank so you will definantly need to be the sqweeky wheel and followup on a regular basis. This is what you would be paying a loan modification company for at this point.
Banks use a simple formula to figure out if you qualify for a loan modification.
Gross Income/3= New payment max, PITI+HOA.
Now that the bank knows what you can afford they simply try to find a solution to fit your loan into that payment. They can achieve this by adjusting the interest rate, loan term, princple reduction, interest only payment or most likly a combination of these.
