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You will need to contact your lender‘s loss mitigation department and ask for financial assistance by providing you with a loan modification application. Please note that the lender will send a field inspector to verify that you are residing at the property. It cannot be rented out or tenant occupied. If you are living at the property, you should start putting together a HARDSHIP LETTER that will explain to your lender what caused you to fall behind and how you will be able to resume your monthly payment obligations in the event you are given a chance to get back on track while your application is being mailed to you. If you need assistance or a proper template or format that you would send to your lender, you can CONTACT US  for a complimentary template where you can edit, add your hardship and print the letter to include in your return package. You should also check to see if you will qualify for your new modified loan by checking our debt to income CALCULATOR HERE. 

No, you do not need good credit to qualify for a mortgage loan modification. In fact, loan modifications are specifically designed for homeowners who are already behind on payments or facing imminent default, situations that naturally damage your credit score.

Lenders do not review your credit score to see if you are a "good credit risk" like they would for a traditional refinance; instead, they review your financials to see if you have the willingness and stable income to afford a new, modified payment plan.

Generally, you cannot use your spouse's income for a mortgage loan modification unless they are formally added to the loan as a co-borrower or co-signer.

Adding Your Spouse: 

To legally include yourself or your spouse's earnings, lenders usually require that you or your spouse to be added to the modified note, which involves a credit check and shared legal liability for the debt along with providing your, his or her financials. 

Qualifying Income Rules: 

Named Borrowers Only: Mortgage servicers evaluate qualifying income based strictly on the individuals who signed the original promissory note or that have been added. There are no exceptions to this rule.

Household vs. Borrower Income:

In a community property (husband and wife), general household expenses are reviewed and included. However, non-borrower (spouse that is not on the loan) income is excluded from official affordability and debt-to-income (DTI) calculations required for a modification. ITT id important to note that in a government backed loan such as FHA or VA loans, the lender will pull credit on the non borrower spouse in order to determine the total household expenses. To check if you will qualify financially for your new modified loan, you can use our debt to income CALCULATOR HERE. 

To get a loan modification, you must prove your current income, list all monthly household expenses, show your liquid assets, and explain your financial hardship. Lenders use these details to verify that you cannot afford your current payment, but do have enough money to make a lower, modified payment.

Proof of Income

• Recent pay stubs covering the last 30 to 60 days
• Signed federal tax returns from the past one to two years
• Profit and loss statements (if you are self-employed)
• Documentation of other income (social security, disability, pension, unemployment, or child support)

Assets and Liabilities

• Recent bank statements for all checking and savings accounts (usually the last 2 months)
• Statements for any investment accounts, stocks, or retirement funds (401k, IRA)
• A list of major debts (credit cards, auto loans, student loans, or other mortgages)

Monthly Expenses

• A signed Financial Worksheet detailing your monthly household expenses such as your current mortgage payment, other mortgage loans such as HELOC, student loan, auto loan payments, credit card minimums, chid support / alimony and personal loans. 

Hardship Documentation

• A signed Hardship Letter explaining why you fell behind (job loss, medical issue, divorce, or pay cut)
• Supporting papers like termination notices, medical bills, or a divorce decree

To get a loan modification on an inherited property, you must first contact the mortgage servicer to become officially recognized as a Successor in Interest. Submit a copy of the death certificate, proof of your relationship (like a birth certificate), and legal proof you have rights to the home (such as a will, trust, or letters of administration from probate). Once approved, you can apply for a loan modification based on your ability to pay.

Distribution to Heirs: If the beneficiaries want to keep the home and debts are paid, the executor files a petition for final distribution. Once the judge approves it, a probate referee or attorney prepares a Probate Distribution Deed transferring the title to the beneficiaries.

Sale of the Home: If the home needs to be sold to pay debts or to divide cash among multiple heirs, the executor can sell it.