Tips on the loan modification process
The loan modification process can easily take up to 90 days and requires careful note-taking, a calendar to mark, and a willingness to use the telephone again and again. The process is not fun but the old adage of “persistence pays off” definitely rings true when dealing with modifying a loan.
The article below by real estate agent and speaker Ralph R. Roberts advises borrowers to ask several questions upfront, whether they are dealing directly with a lender or working through a loan modification specialist.
Besides the questions he provides, Roberts also strongly counsels to not expect lenders to call you back to keep you current on your situation. They will not. If a deadline to hear something passes, get on the phone yourself, the next day, and ask why.
In addition, other options may be better than a loan modification like consulting a real estate agent about listing your home for sale or talking to a mortgage broker or loan officer about refinancing. Speaking with a bankruptcy attorney to find out whether filing bankruptcy is also a last resort option.
Roberts also advises to have all default and foreclosure actions frozen while you are trying to restructure the loan, but adds: Lenders rarely put a stop on the foreclosure process until a workout solution is fully in place.
By John Skinner
