How To Identify A Good Candidate For A Loan Modification?

A loan modification is not meant for clients that are able to obtain a traditional refinance. It is for clients that are unable to do so for a variety of reasons.  In order to assist you in communicating this new service to your borrowers you may want to begin by looking at your database to identify those borrowers put into the following category of loans and contact them to see if they are struggling. Perhaps giving them a call and emailing them would be your first step! If your client is struggling with any of the below situations, they may be a good candidate.

Do you have clients/borrowers who:

• You helped to place your client in a 2/28, 3/27, 5/25, Interest Only and their loan is getting ready to adjust or has recently adjusted and they are unable to make their payment or are struggling to do so.
• Someone who recently was turned down for a refinance for any number of reasons…
  • Not enough equity
  • Credit too low
  • Debt to income ratio too high
  • Gap in employment too long
  • Didn’t meet lenders guidelines
  • Couldn’t get them the LTV needed
• Is your client’s loan amount higher than the current value of their home?
• Has your client been turned down for a loan modification?
• Do they have poor credit?
• Is your client behind on their mortgage payment and can't catch up?
• Is your client in foreclosure?
• Has their income recently been greatly reduced? Loss of job? Change in jobs?
• Have family health issues caused time away from work?
• Has there been a recent divorce and now they are unable to make ends meet?
• Are they self employed and their business has declined, effecting their ability to pay their monthly bills?
• Previously stated income borrowers who really don’t have enough income to meet their current monthly obligations