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:
Call Each Week
Not just for an update, either. Speak to a person in a department "beyond" customer service, like the Loss Mitigation Department or some derivative of it such as the "Immanent Default Specialists" or the "Making Homes Affordable Team" or "The Way Forward counselors, or, well, you get the picture. Make note of the agent's full name and request information that requires an entry on your file. For example, ask if a specific item, like your 4506-T form is in the file. Or, ask why you were not on a trial modification. Each week ask new questions that require opening, investigating and notating your file.
After the first month start to update personal information like budget items such as innocuous changes to utility expenses or minimum credit card payments or other. Ask if it is time to update paystubs or bank statements, etc. These, then become material for further follow-up efforts.
Weekly Faxes
Do not simply fax for an update. Tie your fax to your phone calls by faxing to the attention of the person you spoke to by phone earlier that week. Link the conversation to the fax by specifically fulfilling promised information and by asking additional questions to get clarification. The additional questions for clarification provides real material for additional faxes and phone calls.
One Qualified Written Request Per Month
The Qualified Written Request, guaranteed in Section 6 of the Real Estate Settlement Procedures Act (RESPA), is a formal procedure for dialogue between borrower and lender. It is surprisingly effective in eliciting responses from lenders and servicers. You can see an example on my site or at http://www.hud.gov/offices/hsg/ramh/res/reslettr.cfm. Expect adherence to the requirements of QWR - 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. These practices should not take you more than 20 minutes per week. Remember to call VERY early in the day so you don't have to wait long.
All applications are getting rejected initially.
Don't be surprised or alarmed. Actually, I consider it a good sign as it usually presages immanent approval! Simply continue your follow-up by determining the specific reason for the rejection, addressing it appropriately and escalating it if needed. I have some great tips for diplomatically (and sometimes not so) escalating in another article.
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:
Call Each Week
Not just for an update, either. Speak to a person in a department "beyond" customer service, like the Loss Mitigation Department or some derivative of it such as the "Immanent Default Specialists" or the "Making Homes Affordable Team" or "The Way Forward counselors, or, well, you get the picture. Make note of the agent's full name and request information that requires an entry on your file. For example, ask if a specific item, like your 4506-T form is in the file. Or, ask why you were not on a trial modification. Each week ask new questions that require opening, investigating and notating your file.
After the first month start to update personal information like budget items such as innocuous changes to utility expenses or minimum credit card payments or other. Ask if it is time to update paystubs or bank statements, etc. These, then become material for further follow-up efforts.
Weekly Faxes
Do not simply fax for an update. Tie your fax to your phone calls by faxing to the attention of the person you spoke to by phone earlier that week. Link the conversation to the fax by specifically fulfilling promised information and by asking additional questions to get clarification. The additional questions for clarification provides real material for additional faxes and phone calls.
One Qualified Written Request Per Month
The Qualified Written Request, guaranteed in Section 6 of the Real Estate Settlement Procedures Act (RESPA), is a formal procedure for dialogue between borrower and lender. It is surprisingly effective in eliciting responses from lenders and servicers. You can see an example on my site or at http://www.hud.gov/offices/hsg/ramh/res/reslettr.cfm. Expect adherence to the requirements of QWR - 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. These practices should not take you more than 20 minutes per week. Remember to call VERY early in the day so you don't have to wait long.
All applications are getting rejected initially.
Don't be surprised or alarmed. Actually, I consider it a good sign as it usually presages immanent approval! Simply continue your follow-up by determining the specific reason for the rejection, addressing it appropriately and escalating it if needed. I have some great tips for diplomatically (and sometimes not so) escalating in another article.
About the Author:
Rockwood has been dubbed "The Loan Mod Mercenary".? Visit Rockwood's site about DIY Loan Modiification at Home Loan Modification. Also published at Loan Modification Applicants Must Follow-up Effectively.
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