Thursday, August 10, 2017

Why Does My Lender Want To See My Pay Stubs For A Mortgage Modification?

If you are not able to make your house payments and ask your lender to modify your mortgage, you will have to provide certain documents. The first thing you need to do is to fill out the application form your lender provides and then send them whatever documents they request from you. The documents requested vary from lender to lender but you can count on being asked to provide proof of income and an explanation as to what type of financial hardship you are experiencing. It seems strange to have to turn over your income data when you ask for a modification, because if you aren’t able to make your payments it should be understood that you don’t have enough income to service the existing loan. But there are reasons beyond showing what you bring home every pay day that your lenders is interested in learning, and can find out from your pay stubs.

Here are some reasons why you lender wants to see your pay stubs when you apply for a modification of your mortgage:

         To verify you are employed.
         To verify the amount of income you bring home matches the amount of income you reported on the modification application.
         To see what types of deductions are being held out of your paycheck. If you have indicated you are experiencing financial distress, some of the back story to that situation can be found on your pay stub. For example, if there are pending garnishments your lender will see these deductions on your pay stub and be able to verify you are in fact behind on your obligations. This is a good indication you are suffering financially and need relief.
Once you have filled out the application and provided the requested documents, your lender should review your request and give you a decision on your modification. However, not every case goes this smoothly and many times it is beneficial to have a professional negotiate on your behalf. Our office has experience engaging in negotiation with lenders for modifications, and can analyze the offer made against your financial picture to determine if the offer is workable. If the offer does not afford you any relief, we take an aggressive approach to reach results that do work. For help with your mortgage modification, call our office.

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