Stop Foreclosure Tip - Never Lie To Your Lender

Effective communication with your lender during foreclosure is one for the most important ways to receive a loan modification. If you do not have a successful loan modification it may well be because your lender thought you were lie-ing to them. If they cant trust you it makes it much more difficult for them to give you a loan modification. Here are some tips on how you can communicate effectively with your lender and not lie to them.

In general, you want to show that you can make the monthly payments to the lender, but only by struggling. Therefore, it's always a good idea to paint your financial picture truthfully, but in the worst possible light. Use "Under-the-Hammer" valuations for personal property. Sadly, many things we pay a lot of money for, are practically worthless when sold.

You should use the most pessimistic price point you can, while sticking to the truth. Use your real monthly income, after all taxes have been paid. Don't count any bonuses that may not materialize.

Don't try to paint a rosier picture to the lender other than what your reality is. You want to paint the picture that you can afford a lowered monthly payment and that's all!

You also want to protect yourself, just in case things don't pan out how you planned.

Here are a few other points to remember:

• Never give assets secretly to friends or relatives to hold for you. This is called "parking" and can land you in federal prison.
• Never lie on papers you submit to your lender. If you lie, you can be found out. This is fraud, and there are some serious laws to prevent this.
• Never submit false documents to your lender. Once again, this is considered fraud, and is illegal.
• Be prepared to explain anything which you submit to your lender as if you were explaining it in a sworn statement in court.

Now that you understand what to do and what not to do, it's time to put the Income/Expense Statement together.

Use the worksheet which follows as a guide, and make copies so that you may "fine tune" your submittal. This worksheet may also be submitted as a substitute for the lender's own document. Accompanying this book is the ForeclosuresMedic.com Borrowers Financial Statement Template.xls which can be opened and edited in Microsoft Excel and will automatically calculate the financial ratios lenders are looking for.

To learn more tips on how to work with your lender in foreclosure visit http://www.stoppingforeclosurenow.info