Struggling borrowers needing help to lower their mortgage payments need to learn how to find and complete the required loan modification forms.
Every lender requires a borrower to submit an application that includes the required loan modification forms.
Why are some homeowners approved for a loan workout while others are denied? The secret is knowing how to prepare the application forms properly so that they will meet the lenders guidelines for approval.
The new federal program called HAMP features a standard formula to determine which borrowers are eligible, use this formula when preparing your forms and you will have the inside edge.
What are the required forms and where can you get them? Below is a list of the loan modification forms that most lenders will require to consider your application:

1. RMA: This is a 3 page form that is required for the HAMP program-Home Affordable Modification-that includes the borrowers basic information, like name, address, social security number, dependent information, job history, etc.
   This also includes a brief accounting of the household monthly income and expenses.
   This is what will be used to determine if you fit into the formula for modification approval.
   
2. 4506T- This form is required to be signed and submitted so that the lender can order copies of your trax return transcripts.
   This is done to verify the validity of what you are submitting.
   
3. Hardship Affidavit/Letter: The affidavit is signed under penalty of perjury and explains your current hardship situation.
   You must prove to your lender that you have or will suffer a financial hardship causing the current mortgage terms to be unaffordable.
   A compelling and convincing letter will help your lender to decide in your favor.
   Keep it short but descriptive-one page is ideal.
   

The Financial Statement is really the single most important part of your application.
Based on how you prepare this form, your lender will make a determination as to whether you qualify or not.
That is why it is so important to work on this ahead of time-do not give your bank any information about your income or monthly bills until you have sat down and worked out your budget.
The goal is to show the bank that the current payment is unaffordable and that you cannot make ends meet.
But you most also be able to show them that you will be able to pay and maintain the new modified payment each month, and have a little bit of disposable income left over for emergencies.
This is easy to do when you use a software program designed just for homeowners-all the calculations are done immediately and accurately for you.
If you are not sure how to figure your debt ratio, target payment or the other critical calculations, use this software program to avoid mistakes and prepare the application correctly.
The forms are available in a do it yourself kit along with detailed instructions and software program for preparing them.
The secret to a successful application is to complete the required loan modification forms so that you have met your lenders guidelines for approval.
You must take the time to learn those guidelines and know how to prepare your forms properly so that you will have the best chance of success.
Even the most deserving borrower may denied the help they need if their loan modification application is not completed properly.
Make the decision to become informed and be prepared so that you can have a fighting chance to save your home.
This is too important to leave to chance-thousands of homeowners have already gotten help and you can too!