A modification is exactly what it says. It a process whereby your lender modifies the term of the loan.

This is not to be confused with a Forbearance agreement. A Forbearance agreement is when the lender indulges, but does not forgive or forget the payment that is not payed. During this time, many financial institutions have been giving the mortgage holder a forbearance agreement until after the pandemic passes. With these agreement, usually, when the forbearance time is over, the entire amount of the mortgage payments that you have missed. becomes due and payable.

Let us however get back to modifications. A modification can be very beneficial. The missed payments are worked into the new agreement and a new rate is accessed at the current market rate, which may be less than what you are paying now.

A modification is an entirely voluntary action on the part of the bank, that is, they do not “have” to work with you. When you apply for a modification you must provide the lender with much financial information. The usually ask you to complete a Uniform Borrows Assistance Form along with supporting financial documentation. The usually but are not limited to the below listed:

Uniform Borrowers Assistance Form;

Two years of tax returns;

Two month (all pages) of your most recent bank statements on all of your accounts;

Two consecutive months of your most recent pay stubs;

A 4506T form;

A letter of Authorization;

Any proof of monies received (i.e.: pension, social security benefits, alimony etc);

These documents gathered are then submitted to the lender.

We at Seymour Law Firm, LLC help you understand the documentation completion, the gathering of all the documents, the processing and saving of all the documents, the submission to the lender, the follow up to see of if the documents were received and/or need corrected or whether the lender is in need of additional documentation. The lender will always ask for the pay stubs and bank statements to be current and the latest received. Sometimes the bank will ask for the same information again and we gladly supply this knowing that the granting of a modification is a voluntary act on the part of the lender.