| Articles - Mortgage |
|
Nobody's happy with the loan modification process. But, with tens of thousands of applicants ahead of you in line, you don't have a choice. You have to understand it and work it to your advantage.
Nobody's happy with the loan modification process. But, with tens of thousands of applicants ahead of you in line, you don't have a choice. You have to understand it and work it to your advantage. Once you've submitted a great appliation, effective follow-up is required to get ahead of others. TGodd follow-up practices will; insure that your file gets into the system marked "complete", supply frequent required updates to the file to demonstrate attentiveness, insure that your file does not get sidetracked for rework, enable you to respond quickly if problems arise and counter rejections promptly. In short, effective follow-up creates dialogue that gives you an edge. Here are the steps to take: One Phone Call Per Week Do not simply call for an update. Be sure you are speaking to a person in a department "beyond" customer service. You want to be contacting the Loss Mitigation Department or some derivative of it - like the "Immanent Default Specialists" or the "Making Homes Affordable Team" or "The Way Forward counselors, or you get the picture. Get and record the full name of the party you are speaking to. Request information and provide information that requires an entry on your file. For example, don't ask if the file seems complete. Rather, ask if a specific item, like your 4506-T form is in the file. Or, if your application is for the Making Homes Affordable Modification Program (HAMP), ask why you were not put on a trial modification. Each week invent questions that require opening, investigating and notating on your file. After 30 days have passed start to update personal information like budget items (slight, innocuous changes to utility expenses or minimum credit card payments, etc.) or other. Ask if it is time to update paystubs, bank statements, 4506-T forms or other. They become material for further follow-up efforts by fax. Fax Each Week Don't be routine in your requests. Send them to the attention of the person you spoke to earlier in the week. Fulfill the promisses you made and link the fax to the call. Ask for further clarification, etc. Monthly QWR Qualified Written Requests are a surprisingly effective formal procedure for dialogue between borrower and lender. Find an example at http://www.hud.gov/offices/hsg/ramh/res/reslettr.cfm. Your lender will adhere to the requirements of QWR which are an initial response within 20 days and a formal and full response within 60 days. Don't abuse the QWR process. Rather, integrate it into your follow-up regimen by using it monthly to request important information - one item at a time. Multiple questions per QWR never seem to get satisfactory responses. This effort provides material for additional meaningful faxes and phone calls. And, it provides information that you need. Request the name and contact information for the investor/owner of your loan. Request verification of Fannie Mae or Freddie Mac on your loan. Request a copy of the note (you may get a big surprise with this one!). Request a record of the transactions on your loan. The follow-up efforts each week should tak no more than 20 minutes. It seems like almost all applications are getting rejected at least once. It is highly likely that you will get rejected in error. Especially of late, it seems like erroneous rejections and after re-evaluation is the norm. So, don't be discouraged if you get rejected. Just continue your follow-up by 1) determining the exact reason for the rejection, 2) countering the rejection appropriately and 3) escalating the situation as needed. Get my article on Effective Escalation Techniques for some great tips. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Want to find out more about actually getting loan modifications? Visit Rockwood's site about DIY Loan Modiification at Home Loan Modification Visit the Uber Article Directory to get a totally unique version of this article for reprint. |