Frustrated and angry that your bank is spinning your wheels and you need help modifying your loan right now? Well, the Federal Reserve is also frustrated with the extremely low number of completed loan workouts, so it has set a timeline to get a response to homeowners seeking assistance with unaffordable mortgage payments.

How can you get help modifying a loan in just 30 days? That’s HAMP’s goal: to provide a loan solution so homeowners can avoid foreclosure and stay in their home. It’s possible to get your answer quickly, but there’s a catch. The federal timeline says that homeowners must receive a yes or no response from their lender within 30 days of receiving a COMPLETE loan modification package. So if you don’t submit the correct paperwork, the clock doesn’t start ticking and it can take much longer.

What exactly is a complete loan modification package? Well, the standard documents that are required are:

1. Borrowers Information Statement – ​​This simply provides your personal information, such as your full legal name, date of birth, social security number, and property information.
2. Financial Statement: The “meat and potatoes” of your package, this form details your gross monthly income, your monthly debts, and your assets. How important is this form? Well, depending on how you complete this will make a decision to approve or reject it, so understanding how to adjust your budget to meet HAMP guidelines is critical.
3. Hardship Letter – This is a brief description of why you can no longer pay the mortgage. It’s important to keep it on a single page if possible, but also make sure you use the trigger phrases your bank is looking for. One of them is “imminent risk of default”, there are 3 more that you should include.
4. Proof of your income – Be sure to include your 2 most recent pay stubs, 2 years of tax returns, 2 months of bank statements, and any rental agreements you may have. This is a full disclosure process, so you are expected to prove everything you put on your financial statement.

So it’s really up to you to make sure you prepare a complete and accurate application if you expect to get loan modification help in just 30 days. The truth is that homeowners are not given the inside information they need to have a good chance of approval. Did you know that there is a 4-step formula that all banks use to qualify homeowners for HAMP? Well, you can use this same formula to prepare your own financial statement and make sure it fits within the guidelines.

If you need help calculating your own debt ratio, new target payment, asset ratio, or any of the other qualifying triggers, then you can use a software program designed to help homeowners prepare their application. The Loan Mod Quick app actually mimics the federal guidelines and is very easy to use. Simply enter your own income and expenses, and all the relevant calculations are done immediately and automatically for you. You’ll see if you need to make any adjustments to your figures before your lender reviews them.

Homeowners need a fighting chance, and proper preparation of your loan modification application is the most important part of the 30-day approval criteria. When you are prepared, informed, and persistent, you are giving yourself the edge you need to be successful and get the help you need and deserve.