Once you've decided to apply for a loan modification, there are a few things you should have in mind. You'll need to get some paperwork in order, you'll probably need to draft a letter to your lender explaining why you're seeking to have your loan modified, and you'll have to be prepared to have someone come to your home to make an inspection.
No one likes to have strangers traipsing through their home. Your home is where you sleep, where you eat, where all of your most private and intimate conversations take place. But if you've gotten to the point where you're considering seeking loan modification, chances are good you've also considered what it would be like if you were to lose that home to foreclosure. When you weigh your options, having a stranger take a walkthrough of your home is looking a little better, isn't it?
Still, you may not be jumping up and down with excitement at the prospect. Being prepared for someone to come inspect your home is key so that you're not caught off guard by what he or she may have to say. There are a few things you can do, or look for, prior to having your home surveyed that might make a difference in what the inspector believes the value of the property to be.
It might seem obvious, but for a lot of homeowners it isn't: make sure your home is clean. Go through your house room by room and pick up any clutter that is lying around on the floor. Put toys in a bin and have the kids tidy up their own rooms. Mail should be filed away and paperwork put in its proper place. Wash dishes and put them away, wipe down surfaces, and vaccuum floors. You want to make your home look appealing, so think about what you would want it to look like if you were having guests over for dinner, or your in-laws were coming for a visit (and no, having someone from your lending institution inspect your home won't be that bad). Chances are the person inspecting your home on behalf of the lending agency is a homeowner just like you who understands the stress and responsibility of maintaining a home and family, and wants to help you get the loan modification process underway.
Before the inspection, it's a good idea to make sure all the major systems in your home are functioning and in good working order. Loan modification takes these things into account, and it's better to know in advance if there are any major repairs that will need to be made to bring your home up-to-date. Check your furnace or heating system, make sure there are no clogged drains or major plumbing issues. If you've been having difficulties with ants or other infestations, make sure you take care of those problems before your home is surveyed, either on your own or with the help of an exterminator. The last thing you want is to give the impression that you are letting your home fall apart, or that you don't care about the value of your house.
And last but not least, make sure you and your family also look tidy and respectable when someone comes to inspect your home. Your home is an extension of yourself, and how you look and act is a reflection on your attitude on life, right down to your ability to hold a job pay your bills. Small acts like tidying your home can go a long way towards making a good impression on the individual who comes to represent your lending agency.
