Documents You will Need for a Loan Modification in Salt Lake City, Utah

Foreclosure is at an all time high. From January to June of 2009 Utah, the Salt Lake Tribune reported that Utah had jumped from the 5th lowest in foreclosures in the nation, to the 5th highest. Utah is right in the thick of things with this mortgage meltdown and Salt Lake City is leading the way. To stop foreclosure in Utah you need to act now!

There are currently 2 common options that you have to stop foreclosure, loan modification, or short sale. What option is best for you will solely depend on your individual situation, but in this article I am going to talk about the documents that you will need to do a loan modification, and more importantly I am going to tell you why you need those documents so that you are not just blatantly handing over your personal information.

First, you are going to need a hardship letter. This is a letter to your mortgage company letting them know the details of your situation. There are many different forms of hardships that people experience, but right now the most common is job loss. This lets the mortgage company know that you aren’t skipping payments so that you can afford some boat that you just bought, or something like that.

Next, you are going to establish your financial information with the numbers to prove it.

You will need to gather up pay stubs for the last 2 months, if you are unemployed then you will need to write a letter explaining when you were let go from your past job, what you were making when you were let go, and that you are currently looking for employment.

You need 2 months of bank statements to show that you are not getting any outside money, you don’t have a million dollars in your savings account, and that you are being truthful about your.

The mortgage company will ask for the past 2 years of taxes. They are checking if you owe money to the government, and again this proves your past financial situation.

The final thing that you will need is what is called a personal financial statement. This is basically a monthly budget. This categorizes where your money comes from, and goes every month. This does not have to be exact numbers, and this is the main dictator of whether or not you will qualify for a loan modification. The mortgage company is looking for you to afford payments at about 30% of your income.

If you can not afford to give about 30% of your take home pay to the mortgage company then you will probably not qualify for a loan modification and you may need to look at some other options to stop foreclosure in Salt Lake City, Utah.