To stop the foreclosure process and to save your home you have decided to apply for a modification to your mortgage. You have sent to your mortgage company the information which they have asked for.
You wonder how long it will take them to make a decision and to let you know. You are anxious. You want to know if they will agree to modify your mortgage and to reduce your monthly payment. What will that new payment be? Will you be able to make it every month?
Will you be able to keep your home or will you and your family have to find another place to live? If you have to move what will your relatives and friends think? Will you be able to find as nice a home in the same area where you live right now?
All of these things are on your mind and you would like to know quickly. Let me tell you. Your mortgage company probably is not going to respond as quickly as you want.
In normal times it would take a mortgage company anywhere from 30 to 90 days to respond to a request for a loan modification. However, right now, the system is backlogged. With the new Making Home Affordable Modification Program the guidelines have been relaxed. More people will be applying for a loan modification.
Mortgage companies have been overwhelmed with requests for loan modifications. They are not staffed to handle the volume of requests that they are receiving. What does that mean? It may take 6 months or longer before they make a decision on some cases.
Let’s look at what a mortgage company is most likely to do. They will most likely work on the easier cases first. They will also work on those cases which need to be done more quickly first.
Most mortgage companies are reactive. If they pick up a file and all of the information they need to make a decision is not in it, they will be slow in communicating what they need. If all of the information they need is not submitted at the same time, they won’t look at the file until everything they need comes in.
If information they need is submitted at different times there is a greater chance that some of it may be misfiled and lost. They will request it again and not look at the file again until it is received.
What steps can you take to make sure that your application is looked at as quickly as possible?
First – make sure that you know all of the information your mortgage company requires. Submit it all at once to them. Send it registered mail. Keep copies of everything you send. If they ask for more information, send that registered mail too. Also keep copies of that.
After you submit it, call and ask them how long it is taking them to process applications. Ask them for the best and worst case scenarios. Mark on a calendar the earliest date they told you that they might make a decision. If you have not heard from them by that date, call your mortgage company and find out the status.
If they are still working on your application, ask them when they may finish. Note that on your calendar. If you have not heard from them by then, call and get an update on where they are at.
Keep doing this until you get their decision.
Keep a log of each time you call. Make a note of what you are told. Get the name and title of each person you talk to. Also get their phone number. The next time you call, ask for the same person again.
Mortgage company people are notorious for saying that they will call people back by a certain date and never doing so. So don’t rely on anyone to call you. Always be proactive and make the call yourself.
As you can imagine, this process can be very frustrating for people facing foreclosure who apply for a loan modification. You are better off to get a lawyer or an expert specializing in foreclosures to help you.
Because of all of the work the lawyer or the expert have done, they may have had prior experience of working with your mortgage company. They may know how to get your application looked at more quickly. They may also know people to talk with to find out the status of your file.
If you hire a lawyer or expert, have them call the mortgage company. Keep track of the dates they tell you and follow up with them right after each date to get the status. If the mortgage company calls you, don’t talk to them. Politely refer them to your lawyer or the expert working for you.
Remember – You always want to take charge of the foreclosure process and to keep your home – the home you always wanted and have worked so hard for. You want to do all that you can to protect yourself and your family.
In my EBook I go into more detail on steps to take to help you avoid foreclosure. You may want to check that out.
Much Success,
Mark Elkins
