Tips For A Successful Modification

1. Get a housing counselor

Visit www.hud.gov/offices/hsg/sfh/hcc/fc to search for a governmentcertified foreclosure avoidance housing counselor in your area. It’s best to make an appointment since many centers have long waiting lists.

2 Gather paperwork

Pull proof of income including pay stubs, rental leases, Social Security award letters and three months of bank statements, a list of household expenses and W-2s and taxes for the past two years.

3 Track financials if you’re self-employed

Because your application will require less conventional documentation, you need a paper trail. Put together a profit-and-loss statement for the past three months and make sure your taxes are accurate.

4. Document the process

Keep detailed records of your application process including dates you mailed paperwork, correspondences with your counselor, the names of bank representatives who gave you instructions and what you were told. Retain copies of all paperwork.

5.Reapply after a denial

If you’re ineligible because your income after expenses isn’t high enough, cancel your cable or a home phone line. Sometimes cutting down monthly expenses by a mere $30 will do the trick. Also, banks have been known to input homeowners’ financial information incorrectly, so it’s worth having them look at the numbers a second time.