Once you submit the required paperwork or apply over the phone, your lender will provide you with an approved loan-modification plan if you qualify.
Often, the approval is non-negotiable, meaning that what your lender offers you in terms of a loan modification is final.
Keep in mind that even if you accept the loan modification, nothing says you cannot apply for a new program in the future. For example, if you successfully modify your loan and then later find another opportunity to modify the loan at a more favorable rate, you can go back to your lender a second time and apply for the new loan modification.
Once your loan modification is approved, you will be sent legal documents explaining the terms of the loan modification. Note that the loan-modification approval will have a deadline. If the documents are not executed AND returned or remain incomplete by the deadline, the modification will be cancelled.
It is very important that you review the documents as soon as possible after you receive them. If you don’t understand what they say, you should immediately consult an attorney.
Proceed to Step Six