What to ask when calling for a Loan Modification. Home Retention Workshop coming soon.
One thing I noticed when I have been speaking with most of my callers is that when someone calls the bank for a loan modification status or update, you always seem to reference the person you spoke with as the BANK. Let me be more specific, when you call the bank for anything you are speaking with a bank representative. Yes, they are from the bank but they are only representing the bank. I would like to explain and maybe shed a little bit of light on how to talk to your lenders, how to make sure you are getting the right answers from them. By doing this, you always have to realize that the bank representative you are speaking with is just like you and me, they are just workers and may make mistakes or make self assessments. Although they should be answering your questions based on protocol .
The bank that your are calling for Loan Modification has many departments, like Home Retention this department normally handles homeowners loan modifications. Short Sale departments for obvious reasons. The Foreclosure Department, the Bankruptcy Department, the Collection Department etc. Recently they have added Loan Resolution Department which handles short sale (Outsource) processes that goes thru HAFA ( Home Affordable Foreclosure Alternative ). Therefore, first thing is to make sure you are calling the right department, PLEASE ASK THE REPRESENTATIVE. By asking questions, you will give a sense of authority towards the representative, this way they will give some respect in return. Here are a list of questions I would like for you to ask when following up on a Loan Modification :
· Am I calling the Home Retention Team
· Do I have a TRUSTEE SALE DATE – this is the day the property will be foreclosed.
· Do I have a NOTICE OF DEFAULT – once the Lender file this notice, you have 90 day to resolve your issues, pay your defaults, submit for modification, short sale, etc… but the NOD is the start of a foreclosure process. An acceleration to file for foreclosure is not the same.
· Can I directly speak with my Negotiator for my Loan Modification Approval. Always try to speak with your negotiator, specially if they are taking too long.
· Always ask for when you should expect for an approval in writing.
· If the process is taking too long, ask for upper management “ESCALATION” use that term. A manager have to step in just in case your negotiator is not doing their job or too busy and falling behind.
· Always tell the lender what you want to pay or can afford to pay, ASK for 2% interest Rate at all times. Always ask the bank to explain how they will come up with the modification rate they are offering you.
· If your representative is not courteous, not knowledgeable or you just don’t feel them at all. Hang up the phone and call again and try to speak to some who can help you. Remember if they are nice, it does not mean they are knowledgeable.
· ALWAYS ASK YOUR QUESTIOINS AGAIN AND AGAIN. WHY ? Because you might get someone who might actually care and might actually help you expedite the file, escalate or even tell you what is really going on.
Last thing you want to do is take that one persons word ( THE BANK ) and do nothing else. I want for you to call them at least twice a week asking the same questions.
Someone ask me about Loan Forensic Audits, I went online and got some info for you.
Would a mortgage forensic audit help?
Online blog : Loan audits are a waste of time for everyone except the companies that paid to promote them...oh wait that's you. Go figure.
Online blog : "Beware of the Latest Foreclosure Rescue Scam--Loan Audits."
Online blog: Forensic audits may help you find any inconsistencies in your loan documents and it may help you with legal leverage for restructuring your loan. I recommend that you contact a loan auditor and have them run a soft audit on your docs (often a free service). If they find something, then you can decide if you want to go the course of a full audit.
My opinion is that Loan Forensic Audits are even a longer shot to get some kind of modification from your lender, maybe it might delay a bit the foreclosure process, but it wont avoid it and it will cost you a pretty penny. Bottom line still is if you cannot afford the mortgage debt, you will not qualify to afford the debt , if you make too much money you will not qualify for hardship.
REMEMBER: Lenders are looking for HARDSHIP and ABILITY TO PAY.
A really good website for loan modification is Makinghomeaffordable.com or loanwork.org.
Inquire about the Home Retention workshop and Credit Score/Improvement Workshop this December. LIMITED SEATS, please call to register.
Please continue to send in your inquiries, thanks again. Call Ken Go going on 24 years of service in the mortgage industry of 1st Innovative Finance Group at 562-697-7028 or write to Kennethgo@verizon.net. We are working on doing a workshop for Home Retention with some major lenders in January 2011 in LA; pls inquire with me on this issue.
