Expert Loan Modification TIP
Tips From The Expert: What You Need to know about Loan Modifications
By: Julie Maeda
If you are considering or are currently working with your bank in an attempt for a loan modification, here are some things you need to know before, during and after you apply:
Do NOT wait until you are behind- In the past, banks would only work with homeowners who were at least 30 days behind on their mortgage. Under The Making Home Affordable Program (HAMP), homeowners do not need to be in default to apply for a loan modification. The program guidelines clearly states that the homeowner needs to have a financial hardship and is either delinquent OR in danger of falling behind.
Submit All of Your documents at the same time-As a homeowner, it can be extremely trying to keep up with the endless documentation that your bank will be asking for, but if you submit all of your up-to-date documents in one packet the process will be much smoother.
Call your lender- After you have submitted your packet call your lender to make sure they have received your documents. Often times, homeowners make the mistake of waiting for the lender to get in touch with them. Understand that banks are overwhelmed with modifications. Call 48 hours after you submit all of your documents to make sure they have received them.
Keep Calling-call at least once a week for a loan modification status update. Remember in this process, the squeaky wheel gets the oil.
Document Everything- Always write down who you spoke with on what date and what the conversation entailed. As a homeowner having a paper trail will be more impactful than you know.
Speak to A Supervisor-Let’s be honest, most front-line loss mitigation representatives receive little training on the loan modification process, and their supervisor can be much more helpful. Do not be afraid to ask to speak to a supervisor, be ready to hold for a while, but it will be well worth the wait.
Don’t take “NO” for an answer- Even though you may not be approved for the HAMP program, most banks have in-house modification programs to keep you in your home. Do not hesitate to reapply for all programs that could be available to you.
In all reality the loan modification process is not guaranteed, but if you have patience and are persistent your odds at getting your loan modified are much better than if you sit back and wait for the banks to reach out to you.
About The Author: Julie Maeda spearheads The Haven Group, a company that helps homeowners with free loan modifications and provides options to struggling homeowners. For more information about the Haven Group visit us at http://www.thehaventeam.com or call 720-295-HOPE(4673)