Guide to Washington Mutual Bank Loan Modification

With the current economic recession, many homeowners are frantic. Their incomes have gone down due to layoffs in the family, pay cuts at work, or personal financial crises - but their monthly mortgage payments remain the same. With monthly payments becoming a steadily increasing percentage of their incomes, homeowners simply can't afford the mortgages they once could. If you are nodding your head reading this article, then you need to look into Washington Mutual Bank loan modification.

To qualify for loan modification by Washington Mutual, you need to first have a loan from them. In general it has to be a first mortgage (never before modified or refinanced) and you have to be the primary occupant of the home (no second homes or investment properties). There are several options Washington Mutual offers to help customers having trouble paying their mortgages down, and loan modification is one of them.

To obtain Washington Mutual loan modification, start by contacting a professional counselor. You are out of your league trying to contact your bank directly on your own to get a modification. A financial counselor has your best interests in mind and represents you to your bank when requesting your modification. They help you to get a fair deal through the process, making sure your bank is not brushing you off or taking advantage of you. Many financial counselors employ attorneys that are specialists in their area to represent you to your lender.

Through your financial counselor, you will submit a hardship letter formally requesting a loan modification. Use your counselor's advice when writing this letter. It should be short, no more than two pages. It should detail briefly your economic hardships and why a loan modification is necessary for you. Use your letter to demonstrate that you are committed to keeping your house and that you will never again default on a modified loan.

Your hardship letter will be accompanied by copies of your financial documents, tax information, and verification of monthly income. Your lender will use this information to decide whether you are eligible for and deserving of a loan modification.

Another option may be loan modification through the government's new Making Home Affordable plan, but only if your loan is insured by Fannie Mae or Freddie Mac. Incentive payments and government backing make this a more optimal alternative to foreclosure for most homeowners. Not everyone qualifies, but it's definitely worth checking into.