Loan modifications can be gruesome for both banks and borrowers; the bank doesn’t know how much your home cost and you are sick of paying for a property that is worth half of what it was a year ago. When filing and reviewing your mortgage loan modification, be realistic but assertive.
Don’t accept what you can’t afford
It is likely the bank will come back at you with an amended version of your home loan modification application. Don’t freak out—it’s probably going to be more than you hoped. Banks have a vested interest in your home loan modification, so they are going to see if there isn’t anything you can do to pay a little more each month. If you can’t afford, don’t accept the terms.
Be firm and prepared for new loan modification terms
Just because you can’t afford the bank’s conditions for your home loan modification doesn’t wash out the bargaining table. Banks have wiggle room on loan mods. Just like any negotiation, they often come to that bargaining table with a high figure, and have an index that will tell them how low they can go. Present them with your own income and budget projection (something prepared by an accountant adds considerable authority) that shows how you are left on the brink of financial hardship.
The truth compels, and banks don’t want another foreclosed home on their books. You may be delighted to discover your expert planning is exactly what tipped the scales in your favor.