How do you prepare and submit a complete loss mitigation application?

1 Gather your documents

In order to prepare a complete loss mitigation application, you must first gather all the documents your loan servicer will require to evaluate your eligibility. This could include a hardship letter outlining the reason for your difficulty in making payments and how you plan to resolve it, proof of income such as pay stubs or tax returns, proof of expenses like utility bills or medical bills, a detailed budget outlining your monthly income and expenses, a copy of your mortgage statement and any other loan documents, and any other documents that your servicer may request. You can find out which documents are required by checking your servicer's website or contacting them directly. Make sure you have the most recent versions of all documents and that they are clearly legible.

2 Fill out the application form

The second step of preparing a complete loss mitigation application is to fill out the application form provided by your servicer. The application form is a standardized form that collects information about your personal and financial circumstances, your hardship, and your preferred loss mitigation option. You can find the application form on your servicer's website or by requesting it from them. Make sure you fill out the form completely and accurately, and sign and date it where indicated. If you need help with filling out the form, you can consult a HUD-approved housing counselor or an attorney.

3 Review and submit your application

Before submitting a complete loss mitigation application to your servicer, it's important to review and double-check your application form for errors or omissions. Include all the required documents and label them clearly, and make copies of your application and documents for your own records. Depending on your servicer's preference, you can submit the application by mail, fax, email, or online. Make sure to keep a record of when and how you submitted your application, and get a confirmation receipt from your servicer. After submitting the application, your servicer has 30 days to acknowledge it and 30 more days to evaluate it and notify you of the outcome.

4 Follow up and respond to requests

The fourth step of preparing a complete loss mitigation application is to follow up and respond to any requests from your servicer. During the evaluation process, your servicer may contact you to ask for additional information or clarification, or to verify your documents. You should respond to these requests as soon as possible and provide the requested information or documents within the specified deadline. You should also keep in touch with your servicer and check the status of your application regularly. You can do this by calling, emailing, or logging into your online account. If you have any questions or concerns about your application or the process, you should communicate them to your servicer promptly and politely.

5 Consider your options and make a decision

The fifth step of preparing a complete loss mitigation application is to consider your options and make a decision. After evaluating your application, your servicer will notify you of the outcome and the options available to you, such as a loan modification, repayment plan, forbearance plan, short sale, or deed-in-lieu of foreclosure. It is important to carefully review the terms and conditions of each option and compare them to your current situation and future goals. It is also recommended that you consult a HUD-approved housing counselor or an attorney for advice and guidance. Upon deciding on an option, you must notify your servicer and sign any agreements or documents required to finalize it.