Going for a loan modification – need to know what happens if you send off a hardship letter
The first thing your loan servicer will do to see if you are eligible for the loan modification program is establish if the loan you have meets the terms for loan modification and if it does:
They will ask about your current income, what assets you have, if any, and any ongoing expenses. What they want to know is whether you will be able to make any new payments that will be due after loan modification by understanding your specific circumstances. Anything you tell them will eventually need to be supported by documented evidence i.e. tax returns, pay stubs etc.
They will also need to establish that your monthly first lien mortgage repayment does not exceed 31% of your gross monthly income.
