Oftentimes, the borrower will want to renegotiate a mortgage loan. In some cases the lender will request the borrower to apply for a modification loan. This happens when the borrower has been in default for some time and the lender is ready to go through a foreclosure process. It is usually easier for the lender to negotiate for new terms rather than proceed with a foreclosure. This is one reason why his initial step is to suggest to the borrower to apply for a modification loan.

The borrower should be ready with items that the bank will want to see. They will want to take a look at his income and expenses. Gather recent pay stubs and a few years of tax returns. Have a list of expenses ready. Bring along at least 6 months of bank statements. Don’t forget to bring your copy of the original mortgage loan.