Nowadays, a lot of people are trying to keep their home from going into foreclosure. And to avoid foreclosure from happening, most mortgage lenders offer a home loan modification.

Though this may be a viable solution, the process may take a lot of time and work. You would nee to gather all relative documentation as a homeowner which would be the same information used for the initial purchase. Yet every lending institution has differences when it comes to requirements, most would need the following documentation for a home loan modification.

1. Mortgage Statement – The mortgage lender would have sent you a statement each month, which confirms the delinquency of the loan, as well as loan number.

Second Mortgage Statement – If you have a second mortgage on the property, this lending institution would also provide you with a monthly statement verifying the same information as for the first home mortgage.

Authorization to Release Information – Every lender is required to have this completed form, which states a lender handling the home modification loan has your authorization to work on your behalf.

- Hardship Letter – This letter is required to be signed by lenders which aims to provide the reason why he needs a modification loan.

W2s – You will need to provide the prior two years W2s so they can determine your current income and identify any change in financial situation. If you were self-employed, instead of W2s, you would need tax returns for the last two years)

Proof of Income – For any signers on the mortgage loan, the lender of a home modification loan would need proof of income. Typically, is includes paycheck stubs for the prior two months, which would reveal any increase or decrease in income while reassuring the lender that you could afford the loan.

- Bank Statements – For personal and all accounts, the lender would be needing the last three months statements. It is the information on the statements that will provide the lender with a detailed story of changes in deposits, daily balances, and liquid assets. A decrease of any of these again supports the need for the home modification loan.

The lender that you have chosen should be able to provide information and guidance and back each action taken toward finalizing the loan.

Daniel Sose is a real estate investor based in Florida. He is a former estate agent and writes widely about issues related to real estate and finance. His latest project revolves around establishing a network of national homebuyers in the UK to help put sellers in touch with buyers online.