After having a long discussion with an agent with whom I work, I thought it would be helpful this Friday to offer a couple of tips for home owners considering or in the process of applying for a home loan modification.

1. Be as accurate as possible on your financial worksheet, but make sure your expenditures don’t greatly exceed your revenue.  The numbers must be pretty close.  My friend said she spent $200 p/month on groceries and was questioned by the lender.  She explained that she has a garden and clips a lot of coupons to keep that expense down.
2. Hand write your distress or application letter.  The lender isn’t interested in seeing a fancy, error free typed request.  They are there to help real people and a handwritten letter honestly written will appeal more to that person you’ll never meet than the cold, typed letter.
3. If you can get in the HAMP program (or Making Home Affordable) by the government, you’ll be well on your way to being approved for the loan modification.  For more information, click here.
4. Do not fail to be in touch with the lender at least ONCE a week – call to check the status, etc.  Make sure when you do contact them, document who you talked with, along with the date and time.

Good luck getting that loan modification.  You’re going to need it.