Qualifying for a Mortgage Modification

Mortgage modification is the process of permanently renegotiating the terms of your existing loan. Qualifying for a mortgage modification depends on the plea that you make to your lender.

Things Needed to Apply for Mortgage Modification


In order to apply for mortgage modification, you will need to know the financial details of your life. These include cash flow statistics, debt to income ratio, and other information pertinent to your current and future financial situation.

Step 1 - Contact Your Lender

Inform your lender that you will not be able to make a payment before that payment is due. If you simply miss a payment, the lender will issue you a "letter of default" and you will be considered riskier than before. If you are upfront with your lender, he or she may be more sympathetic to your situation.

Step 2 - Compose A Hardship Letter

In this letter, provide the financial story of your life. Include documents such as bank statements, credit card bills, and so on. Calculate your debt to income ratio and explain it here. Also mention how desperate you are to save your home. State the reason that you cannot make your payments.  Examples of reasons that warrant mortgage modification are:

  •  job loss or decrease
  •  loss of a spouse or provider
  •  medical expenses
  •  natural disasters

Step 3 - Make Your Payments


If you are granted mortgage modification and you still default on payments, you are likely to go bankrupt or face foreclosure.