ATLANTA, July 11, 2012 (GLOBE NEWSWIRE) -- Many homeowners seeking a loan modification to lower their monthly mortgage payments and prevent foreclosure find the application process a complex web, often causing them to give up before even submitting an application to their mortgage company.
To help homeowners navigate the process, CredAbility has established a team of certified housing counselors to collect and electronically submit the documents needed to apply for a loan modification directly to the mortgage company. This team of counselors serves as a single point of contact for both parties, which helps homeowners submit the proper documents in a timely manner and get a quicker decision on their application.
"A homeowner must collect and send several documents to their mortgage company, and it needs to be done in a timely, organized manner," said Cassandra Johnson, senior vice president of operations for CredAbility. "Our organization can simplify this process by helping homeowners collect the right documents and send them electronically to the mortgage company. As the mortgage company's single point of contact, we can also answer any additional questions and track the application's progress."
Most large mortgage companies will accept documents electronically submitted by CredAbility, including Bank of America, JPMorgan/Chase, Wells Fargo, Citigroup, GMAC, SunTrust and PNC. In addition, any mortgage loan owned by Fannie Mae can be submitted for approval, no matter which mortgage company services the loan.
Before submitting any documents to a mortgage company, CredAbility requires homeowners to schedule a counseling appointment with a certified housing counselor to determine if they may qualify for a loan modification. Consumers can schedule a counseling session by calling 800.251.2227 or visiting www.CredAbility.org. After the counseling session, a homeowner will be asked to provide CredAbility with the following documents, which will be submitted electronically to the mortgage company:
W2s and Other Documents That Prove Current Income. Income verification is critical; documents proving income must be 30 days current when submitted to the mortgage company. In addition to recent pay stubs and other traditional income sources, homeowners should also provide a document called a "contribution letter." This letter explains the source of any household income from people who are not on the mortgage loan. For example, a servicer will want to know the total household income of a married couple, even if only one person's name is on the loan.
Monthly Household Income and Expense Statement. This information enables the mortgage company to see your monthly expenses for food, utilities and other expenses and determine whether you will have enough money to make your mortgage payment.
Letter Explaining Recent or Unique Income Changes. For example, a bank deposit may show various one-time transactions, such as an asset sale, cash gifts from family members or a bonus. Unless you explain this one-time increase in income, the servicer may not understand it and use this information to deny your loan modification.
Hardship Letter with a Timeline. Every application for a loan modification must include a "hardship letter" that explains the reasons for your request. The letter must include the date the hardship began, how it affected you financially, how long you anticipate the hardship to last and actions underway to resolve the hardship. For example, if your spouse lost her job on May 15 and your family income will decrease by $3,000 beginning in August, your letter needs to provide these details.
About CredAbility
CredAbility is one of the leading nonprofit credit counseling and education agencies in the United States, serving clients in all 50 states plus Guam, Puerto Rico and the US Virgin Islands, in both English and Spanish. In addition to providing counseling via telephone and internet, CredAbility operates offices in five states across the southeast where people can receive in-person counseling.
CredAbility is a family of Consumer Credit Counseling Service agencies that include CCCS of Greater Atlanta, CCCS of Central Florida and the Florida Gulf Coast, CCCS of Palm Beach County and the Treasure Coast, CCCS of East Tennessee and CCCS of Central Mississippi.
CredAbility is accredited by the Council on Accreditation and is a member of the Better Business Bureau and the National Foundation for Credit Counseling (NFCC). Governed by a community-based board of directors, CredAbility is funded by creditors, clients, contributors and grants from foundations, businesses and government agencies. /CredAbility provides 24/7 service by phone at 800.251.2227 and online at www.CredAbility.org.
The CredAbility logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11910