Negotiating For Loan Modifications | Mortgage

by T.J.Rockwoodjr.

Most people hate negotiating! Do you? Some people are actually good at it, but most people aren't. And, most of us do not like doing it at all. But, when your home is at stake, like when you are negotiating with the bank for a loan modification or other workout solution...it's critical. And, you can be a much better tele-negotiator if you follow these nine rules. These are good practices that come from many years of tele-negotiating with opponents about foreclosure and debt settlements.

1. Control your ego Be sure to Listen twice as much as you speak. After all, that is why God made you with gave you two ears and one mouth! Talking, you give away information. Listening, you gain information and knowledge. Ask questions that lead to lengthy responses and listen a great deal.

Do like Lieutenant Columbo, the famous TV Detective. Avoid mind games with questions and listening your opponent into submission. "Do a Columbo" on them.

Think of the other party like your son or daughter. Don't be condescending and don't embarrass them.

2. Do not let rude behavior offend you. They try to offend you. They try to distract you and put you off-guard to make you want to get out of this situation at any cost and fast. Understand? Don't succumb to it. Simply hang-up in the middle of a sentence. That is better than to lose your temper.

I'm often amazed at how much well-mannered people struggle with just hanging-up on a collection agent. Most people try to bring the conversation to a amiable, friendly close. That's what we are trained to do from our youth. Forget that - when you need to end the call, just hang-up before you say something dumb.

3. Be prepared. *Know the strengths/weaknesses of your position and theirs *Think about the motivations of your opponent *Know your alternatives and theirs *Establish in your mind the goal for each encounter *Recall that time is really on your side...IF you have control of the cash flow

4. Always be willing to walk away. This means walking away from each conversation without an agreement...not walking away from the entire deal. You want to negotiate until the deal is right. That's when you will get the best settlement.

You will get the best settlements if you are patient and wait until the deal is just right.

5. Focus on the Agent - their pressures and their needs. Don't focus on just your own needs. Remember, they need to close this file and move on to other files. Offer to fax to their personal number or to email directly to them. Always be prompt and complete on all your responses to their requests. Help them do a good little job!

Be sure not to "talk-down" to the agents. Most people do - and the agents kinda expect it. They deal with angry people all day, so be nice to them. It will pay off.

6. Get something in return if you must give up something. Consider each item offered to be "yours". Be sure not to let go of it without getting something in return. The agents record every item of the negotiations - you need to as well.

7. Ask for what you want. I recommend asking for a specific dollar amount. Create some rationale around it (i.e. "it is 31% of my gross household income, or, it's 31% of blah, blah, blah, blah, blah).

8. Don't Lie. Lying is wrong and it always seems to trip me up!

9. Write Things Down! "He who has information wins." Keep good records of what is said, by whom and when. I included a Journal in my book...use it like a daily diary of each conversation.

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