Loan Modification Monthly Expense Worksheet

In my first article on loan modifications we talked about how to start the process of getting your loan modified with your existing mortgage lender or mortgage servicer. To recap the process of getting started on your loan modification you need to do the following things:

Contact your lender
Ask for the loss mitigation department
Make a case for why you are a good candidate for a loan modification
Document everything
Be persistent

In today’s loan modification article we’re going to cover the financial statement that most lenders or servicers have applicants for loan modifications complete in order to evaluate if the applicant is a good case for loan modification.

Documenting Your Efforts

As we mentioned in the last loan mod article you need to document your efforts. This not only helps you move things forward and overcome obstacles in the loss mitigation department; it also helps serve as a written record of what transpired in your efforts to modify your loan. This information may come in handy in a foreclosure proceeding. In order to track your efforts I’ve made available to you a loan modification call log which you can download here (Excel sheet). This worksheet and tons of other great do-it-yourself loan modification information can be found in the Mortgage Relief Formula (of which I am an affiliate). While I am an affiliate I read the book before becoming an affiliate and I truly believe the information in the book is extremely valuable for those of you considering a loan modification.

Financial Statement Worksheet

Each lender will ask you to fill out a financial statement that you must submit to the lender. The lender will use this financial statement in determine if you are eligible for a loan modification. In a future article we’ll discuss how the lender determines your eligibility but for now we’ll focus on your financial statement worksheet.

In the Mortgage Relief Formula Richard Geller discusses some ways in which you can improve your chances for loan modification qualification by preparing your own financial statement instead of using the lender’s. We’ll touch on it a bit later, but the book has an excellent explanation.

Get Your Financial House in Order

In order to successfully complete the lender’s financial statement you’ll need access to all of your monthly bills, bank statements and recurring expenses so that you can accurately document your assets and liabilities. A typical loan modification financial worksheet will request the following information:

Contact Information
Property information including estimated value
Current monthly income
Additional income (not wages) such as social security, child support, welfare, etc.
Estimated value of all assets
- Home
- Other real estate
- Checking accounts
- Savings
- IRAs
- 401(k) accounts
- Stocks, Bonds, CDs
- Auto 1, Auto 2, Boats, RVs, etc.
- Other investments
Liabilities (monthly payments and balance owed)
- Alimony – Child support
- Dependent care / child care / tuition
- Cable /cell phone
- Other mortgage(s) / rent
- Personal loan(s) / credit cards
- Medical expenses
- HOA fees / taxes / insurance
- Automobiles
- Tax liens
- Utilities
- Auto expense (gas / maintenance)

Additional Information Needed on Your Financial Statement

In addition to the above numbers (which you’ll need to pull from your copies of bills, statements, etc.) you’ll need to provide a statement documenting the reason you are unable to afford the mortgage (or reason you have fallen behind) and the reason that you are a good candidate for loan modification. This statement should be a moving one that depicts you in the best light as a responsible borrower who through the twists and turns of life have fallen behind. NOTE: You should NEVER lie to you lender – EVER, PERIOD. But you should do your best to detail the reasons that you have fallen behind and the reasons why you are a good candidate for loan modification.

Why Preparing Your Own Financial Statement Works Best

As you can see from above the information requested by the lender is exceptionally detailed and requires a ton of research and exacting detail that can be difficult to put together. By preparing your financial statement ahead of time you dictate its format and contents which not only make it easier to prepare; but also allows you to deliver it to your servicer quickly saving precious days during the process. It also gives you other advantages that are covered in the book. When you prepare your own financial worksheet you want to list out your large liabilities such as your mortgage and cars, but group smaller liabilities such as car expenses, cell phone and utilities, etc. so that you present a more consolidated picture.

Some lenders may require that you fill out there financial statement; but if you have yours done ahead of time you can save valuable days of processing by delivering it to them up front.

In the next section we’ll talk about the best ways to get your loan modification approved and what steps you must take to make your new loan modification a reality.