Did you know that how you prepare you loan modification forms can make a big difference in whether your application gets approved or denied? It's true-the information you provide will play a big part in your lenders decision to either give you a loan workout or deny your proposal. Make sure you have done everything you can to get the loan workout you need so you can stay in your home. Read these 3 Secrets that will help you complete your loan modification forms.

Secret #1 is to make sure you do not omit any of your debts or income. Your lender will verify everything on your loan modification forms by checking it against your credit report and your bank statements. If you leave out a debt, or do not disclose a source of income, your debt ratio could be thrown off when your bank discovers the discrepancy and your application could be denied.

Qualify for mortgage loan modification and prevent foreclosure now!

Loan Modification forms Secret #2 is important-you must be able to determine your target payment so that it is affordable for your family now and in the future, but also meets your bank's guidelines for approval. Then use this target payment to complete your Proposed Financial Statement, proving to your lender that you will be able to afford to stay in your home. When you show your bank in black and white that you are not a risk for re-default, you can convince them that you are a good candidate for the Obama loan workout plan. The target payment is ideally 31% of your gross monthly income. This new modified payment represents the amount for your principal, interest, property taxes, homeowners insurance and any homeowners dues. If your loan can be modified using the standard methods-such as reducing the interest rate to as low as 2%, extend the loan term 40 years, and possibly defer some principal, then you have a good chance of approval.

And finally, Secret #3 is to compose a convincing Hardship Letter that contains 3 critical elements that will help your lender empathize with your situation so that they will be inclined to offer you a loan modification. Homeowners must demonstrate that they have suffered a financial hardship in order to qualify for a loan workout, and this is your chance to describe the circumstances surrounding your inability to continue making the current mortgage payment. Do you know the 3 elements in every successful Hardship Letter?

Your financial situation may feel like it is spinning out of control right now, but you do actually have some methods you can use to improve the chances of getting your loan modification forms approved. Help is available to borrowers who know how to get it. A whopping $75 billion dollars has been allocated to keep borrowers in their homes-don't miss out on your chance for a lower mortgage payment. The Obama Home Affordable Modification Plan uses a standard formula for everyone-learn this formula and use it to complete your application. When you do this ahead of time, you are giving yourself the inside edge to success.