More and more people I meet are becoming aware of the loan modification process that many mortgage companies are using. At the direction of the Obama administration, mortgage companies were requested to help mortgage holders avoid foreclosure and help the housing market and economy.
Many have applied for a modification and many have found out that it is a long, long, long process. One of my clients applied in January of 2009 and was just recently, April 2010, approved for a permanent modification. Still others are waiting to hear, are on a temporary modification or have been turned down.
Just this week changes went into effect that may impact your ability to move faster in the process. While many languished in the anxiety of learning when they would be approved or rejected, it often took months while the mortgage company walked through their processes.
With the new changes this week, two things are changed that you need to be aware of. First, you may now be required to prove your income and second, you should know within 30 days if you qualify for the temporary modification (while they work towards a permanent modification) or if you are being rejected. The later is HUGE!
According to the changes, you must be notified within 10 days of your submission that all necessary information is correct. Once it is correct, you will be notified within 30 days of the approval for the temporary modification.
Be aware of the need to prove your income. This may be more difficult for small business owners, etc. Additionally, you will be required to sign an IRS document that gives the mortgage company the ability to pull your tax records.
Hopefully, these are good changes that will speed up the process. Click here to see the changes.
