What Things Your Lenders Are Looking?

By Malik Ahmad attorney at law, Las Vegas, Nevada
What things your Lender is looking?

I get innumerable phone calls as well as emails from very distressed homeowners all days. Some of these homeowners shocks me when I ask them a very simple question like how much is their interest rate. It is a simple question but shockingly most of the home owners don’t know it. I was expecting this to be on their finger tips, but they either put me on hold, or just wants to call me back after finding out. Okay, here is the summary of things one need to know or what should have in their hands when calling me or any of the other licensed attorneys. Why I says licensed attorneys? Because they have a degree in law and a license from the highest court of the state. Also, most of them carries a malpractice insurance. To them their license and their integrity is the most important thing to preserve. They are required for any loan modification. Please don’t contact any scam artists in this regard, and I had posted earlier how to weed out the good ones from the bad ones. Let me write few points here for refreshing the memory of my readers.1. Does your caller has a 702 area code?2. Does he have a local address?3. Is he licensed to practice in the state of Nevada?4. Does he has an ansering machine or staff ready to connect to him.5. Again, is he easily communicable with you and with your issues. Now, since I am on the topic, let me add few things which your lender is looking for in order to give you a loan modifications.

1. The first and by far the most important thing for your lender is to decide that if they modify your loan, would you be paying the modified amount? This is the single most questions which is central in the decision making process.

2. Do you have a verifiable and documented job, and income?

2.1 Make a simple financial sheets expenses and income on each side of the page.

3. Do you suffer from a temporary or permanent hardship?

4. What kind of payment history you have?

5. What is your finacial assets and liabilities report at this time? For instance, if you can cut down some of the expenses (like cable tv), can you readjust your income according to your needs.

6. Your latest bank statements.

7. Lastly, I like to tell everyone that your lender would pull out your credit report to find out if you are current on your credit cards but missing your home payments. In their opinion, you can be delinquent on your credit card payments, but should not be behind on your mortgage payments. Personally, I think they are right. Your mortgage payment should be your top priority. Afterall, it is a legal contract between you and your lenders. Unless you have a severe hardship, you should not be getting this help. Unfortunately, most of us needs this help. That is why federal government has announced a bailout plan and helped banks to shore up the liquidity crisis.