Obama’s mortgage modification program to help homeowners save their homes from foreclosure has produced less than stellar result so far. Since it was announced early this year, mortgage holders have strongly criticized the slow response by mortgage lenders.  There may be many reasons for this but one of the main reason is the lack of capacity to actually handle so many loan modification applications.

Unfortunately, in order to avoid your home from going into foreclosure, you have no choice than to keep pace with time. Although home loan modification will help you save your home, the initiation of it in itself may actually hold you back from saving your home where you may lose other options if you prefer to just wait for the application process to finish. Because even the biggest mortgage lenders do not have enough staff or adequate experience to handle modification applications, you have to be ready for delays in the process. It has been reported that it may actually take months to have it done.

But although lenders are slow, you do have control in speeding up the process by initiating simple steps from your side. By taking these steps you will see that it will give you positive results as soon as the process gets underway.

Step 1: Prepare all the information on a financial worksheet

Lack of information or insufficient information will delay the process for mortgage modification application. Try and prepare all the necessary information before you apply for a loan modification so that your lender doesn’t need to call you for further information.

An essential aspect in a home loan modification is your financial statement. Before applying for a loan modification, prepare a financial statement of your assets and liabilities. Usually the lender will ask you to fill up a form with your finances because they may have their own format. But when you are asked to fill up their format, you will have all the details ready from your own financial statement and you won’t have any delays in filling up the form.

The typical information that is usually required and should be provided in a worksheet is as following:

• All kinds of income: your income, your spouses’ income or other additional income such as child support, welfare and so on.

• All the assets that you own: real estate, investments, bank accounts – including savings account, checking counts, stocks, bonds and others.

• All your liabilities: monthly bills, all your existing debts, medical expenses, insurance, tax liens and others.

Step 2: Collect all documents and bills as proof for your financial statement

Now that you have typed down everything on a worksheet, try and find all the related documents that can support your financial statement. It is very important to provide verifiable documentary evidence to back up your financial statement when you apply for loan modification. So if you have recorded that you have medical expenses to pay for, digg deep and collect all the required papers and bills to prove your lenders that you actually do have medical expenses as much as you have reported in your financial statement.

By succeeding to prove every single item in your financial statement, you do not allow any chance for the lender to even slightly doubt your statement. The more details and proof you can provide along with your financial statement, the better are the chances of your home loan modification going through at an early date.

Step 3: Keep all things documented and recorded

In these kinds of circumstances keeping documentations is very important. Whenever you have started contacting your lender, keep everything recorded and kept in a file. The recordings should also include all the conversations you have with the lender and the attorney that is overseeing loan modification. By keeping documentations, you will avoid delays caused by lenders who may lose track of your application. Make sure that all transactions are recorded, all receipts are kept safe. If necessary make photocopies of these receipts too for back up.

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