Home Mortgage Modification: Documents Needed to Apply for a Mortgage Modification With HSBC

By Ken Melblock


No one likes being ripped off when making a large, costly purchase, and home refinance should be no different. Typical homeowners don't understand how mortgage loans work and end up paying thousands more then they needed to. Here are some insider "secrets" used in the mortgage industry, which will help you when you refinance your home loan. A Yield Spread Premium is one of the most profitable, greedy, rip offs that a mortgage lender or bank may try to pull on you. Know what is a yield spread premium? Don't worry, most homeowners do not even have clue that it exists. So then what is a Yield Spread Premium and why should I look out for it? Well simply speaking, it is a commission which would be paid to the person who is arranging your home loan.

With that being said the largest lender in the country is stepping up their efforts to try to keep people in their homes. So if you have a home equity loan with Bank of America, it is important to know you do have options. Let's review some of the eligibility requirements for this program: have had your home equity account open for at least 9 months -have not received home equity account loan assistance once in the past 12 months or twice in the past 5 years -be experiencing a financial hardship, such as job loss, divorce or medical emergency -have a willingness and ability to repay the loan

Now that you know why HSBC and other banks are willing to work with you to prevent foreclosure, following is what you need to gather in the way of paperwork to make it happen. Proof of Income: Provide documents that prove what you earn, eg, pay stubs, child support payments, alimony payments, monthly income from investments, rental/real estate income, disability income, social security, etc. Bank Statements: Most lenders will ask for the most recent 30-60 day statements.

So what happens once I talk to the specialist and they determine I may be eligible? Once you submit your information, you will want to stay in contact with the equity department, make sure you are calling them at least two to three times a month, and keep a conversation log of all things you discuss with the representative.

If you are approved you will have to enter into the 3 month trial period, once you have made these payments on time you should receive your final loan modification documents. You may also be asked to send in updated documents like pay stubs or bank statements so keep these handy until the process is complete.




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