Loan Modification Tips for Single Moms

Having a troubled mortgage is enough reason to worry, but single mothers have it a whole lot tougher. With children to feed and just one income to live on, the burden of an underwater mortgage is magnified. Thankfully, the government’s loan modification program offers a viable solution—and being a single mom gives you a definite advantage. Read on to find out how single moms can qualify for loan modification and make the most out of government aid.

Proof of hardship
Being a single mom makes a much stronger case for financial hardship. Lenders tend to be more lenient on borrowers in really tight situations, so the fact that you have a single income can actually increase your chances of getting approved. Write a convincing hardship letter that not only appeals to emotion, but also logically explains how you fell behind and how you plan on getting your mortgage back on track.

Income sources
A steady income is one of the main requirements for a loan modification. As long as you have a stable source of revenue, your bank won’t consider you a risky borrower and will be willing to help reinstate your loan. Besides your job, take into account other income sources such as child support and retirement plans. The latter can actually help a great deal as it indicates long-term stability—it tells the bank that even if you lose your job or get demoted, you have a financial cushion to fall back on and will be able to keep up your modified loan.

Financial documents
Your bank will also want a clear picture of your current financial situation. This will allow them to see whether or not a loan modification is really your best bet, and if not, which solutions make a better fit. Each lender has a different set of requirements, but most of them will need your latest mortgage bills, tax returns, pay stubs or other proof of income, and recent bank statements. You can also include bills for your child’s medical and school expenses, if they help support your loan modification hardship letter.

Professional advice
The best way to ensure your chances is to work with a loan modification attorney. He or she will help you plan out your application and get results that really fit your profile as a single parent. Not only do you get to negotiate better with your bank, you also get a loan modification that works for you in the long run.