Tips on the loan modification process
What does it take to keep a loan modification on track? Patience, of course â€“ the process can easily take up to 90 days. But according to an article at Realty Times, careful note-taking, a calendar to mark, and a willingness to use the telephone again and again are your best friends in working through the process.
The article by real estate agent and speaker Ralph R. Roberts (http://realtytimes.com/rtpages/20090413_loantake.htm) advises borrowers to ask several questions upfront, whether they are dealing directly with a lender or working through a loan modification specialist.
How long is the process likely to take? Find out the best- and worst-case scenarios and then count out the days and mark them on your calendar.
When can I expect to hear something about my case? Mark this date on your calendar.
If I donâ€™t hear anything by the specified date, whom should I contact? Get the personâ€™s name, employee identification number (if available), phone number, and any extension you need to dial to reach the person directly.
Donâ€™t expect lenders to call you back to keep you current on your situation, because they wonâ€™t, Roberts says. If a deadline to hear something passes, get on the phone yourself, the next day, and ask why. And develop backup Plan B, and maybe Plan C and Plan D, he says.
In addition, other options may be better for you than a loan modification. Consult a real estate agent about listing your home for sale. Talk to a mortgage broker or loan officer about refinancing. Speak with a bankruptcy attorney to find out whether filing bankruptcy would be a better choice.
Finally, Roberts advises, donâ€™t be surprised if delinquency notices or late-payment phone calls continue. You should push to have all default and foreclosure actions frozen while you are trying to restructure the loan, he says, but adds: â€œLenders rarely put a stop on the foreclosure process until a workout solution is fully in place.â€
-- E. Scott Reckard