Loan Modification Process

DISCLAIMER: **THIS IS A GENERAL PROCESS: IT IS ALWAYS RECOMMENDED TO CONSULT WITH A LAWYER IF YOU NEED ASSISTANCE WITH A LOAN MODIFICATION**

Phase 1: Document Review Phase

  1. Your file will be assigned to someone. Common titles : Single Point of Contact, Document processor, customer relations manager, Asset Manager. (They don’t review any specific numbers such as Debt to income ratio, income etc.) They are making sure everything that is needed for a complete package is there. (Many people get stuck in this phase)

Responsibilities of the Document Processor

  1. Review package for missing items (they will create a list of items that are missing and can be given to you via mail, or over the phone)
  2. Review everything that is required to make sure they are complete
  3. They are responsible for uploading your documents for the whole team of people that will be reviewing your file.

 

**An issue that may arise in this phase is the document processor requesting for items that don’t apply to your situation. For example, if receive Social Security, are Self employed,  receive disability income, you can’t send in a paystub. They will deem a file incomplete when in fact it isn’t.

Solution: SEND IN A LETTER OF EXPLANATION TELLING THEM YOU DON’T HAVE THE DOCUMENTS THAT ARE BEING REQUESTED. SEND THIS WITH YOUR ORIGINAL PACKET. 

 

HOW TO AVOID DELAYS IN PHASE 1

  1. CALL YOUR LENDER REGULARLY EVERY 48 -72 HOURS (ASK THE 10 QUESTIONS PROVIDED)
  2. BE PROACTIVE WITH DOCUMENTS THAT MAY EXPIRE. ALWAYS KEEP UP WITH YOUR PAYSTUBS, MAKING SURE THEY ARE CURRENT WITHIN THE LAST 30 DAYS.  CURRENT BANK STATEMENTS WITNIN THE LAST 60 DAYS.
  3. FILL IN THE DOCUMENTS PROPERLY
  4. SUBMIT YOUR DOCUMENTS IN A FORMAT THAT WORKS FOR THE BANK 

           -PDF IS THE BEST (IPHONES CAN SCAN AS PDF)

           -FAX OR EMAIL  THESE DOCUMENTS TO SAVE TIME. (USE FED EX OR UPS)

           -WET SIGNATURES ON ALL DOCUMENTS

       5.    DO NOT SEND THINGS THAT AREN’T NECESSARY-THIS CAN SLOW THE PROCESS DOWN. SEND ONLY THE REQUIRED DOCUMENTS AND IF      YOU DON’T HAVE  THEM, SEND THE LETTER OF EXPLANATION

       6.     MAKE SURE YOU HAVE A LETTER OF EXPLANATION FOR EVERY DOCUMENT THAT  DOES NOT EXIST.

 

 

Phase 2: The Underwriting Process (typically 30 days)

Package is now deemed “complete”

  1. Looking at the evaluation of your home. They will do a Brokers Price Opinion (BPO), or full appraisal. (This matters because the investor wants to know if the loan modification would be beneficial for them long term. (Is there equity in the property? Are you under? What is the general condition and value of the home)
  2. Looking at a title report. They will look at all encumbrances on the home including but not limited to other mortgages on the homes, tax liens, mechanics liens etc. some may require for there only to be a 2nd mortgage on the home. 
  3. Looking at the investor guidelines and looking for an affordable payment. They will examine your Debt to income ration (your expense report, income etc) 
  4. Any prior modifications? Did you default on the modification? (Some loans are limited to the amount of loan modifications you can get.)

 

HOW TO AVOID DELAYS IN PHASE 2

1. Don’t assume documentation collection is over. They can still ask for more documents (keep calling regularly)

2. Ask the right questions (of top questions to ask document) and take notes.

3. Is this file on track for a decision in 30 days?

 

 

Courtney Lockwood

Virtual Properties Realty .NET


Office:
2750 Premiere Pkwy, Suite 200, Duluth, GA, 30097
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(770) 495-5050
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©2026 Georgia Multiple Listing Service All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Virtual Properties Realty may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2026 All rights reserved.

This content last updated on Sunday, May 31, 2026 6:30 AM from GAMLS

Listings identified with the FMLS IDX logo come from FMLS and are held by brokerage firms other than the owner of this website. The listing brokerage is identified in any listing details. Information is deemed reliable but is not guaranteed. If you believe any FMLS listing contains material that infringes your copyrighted work please click here to review our DMCA policy and learn how to submit a takedown request. © 2026 First Multiple Listing Service, Inc.

This content last updated on Sunday, May 31, 2026 10:18 AM from FirstMLS

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