The Loan Modification Process – Part 2

Once you turn your documents into your lender, you should call them to make sure they have received the documents and that it is up-loaded into their system. If you are late on your mortgage payment, you will still receive telephone calls from basically, “line filler inners” who have no clue as to what is going on. They can’t really seem to give you any valuable information. You just have to go through the whole rendition of what is going on, what steps you have taken, etc. Sometimes, these people will request additional information from you. Just give it to them. You will also receive information from a loan processor. This is the person who you will have to answer to, the person who will be working on your loan modification. The person who when they ask for some documentation, you get it to them in a timely manner. The rule of thumb seems to be that you will have to up-date your hardship letter and financial information every 60 days. Obviously, this rule varies from lender to lender. I would contact my loan processor once a week, stay on top of the loan modification. You should receive a “trial” loan modification package within 2 months. Look it over, if agreeable, get the ratified paperwork back to the loan processor. Follow the directives. If they tell you to contact a credit counselor, do so and keep records of who you spoke to, from what company, date and time of discussion, and the confirmation number they will give you of said discussion. Your loan processor may or may not want that information, but you should keep it just in case as you won’t know which way your loan processor will go…better to be safe than sorry.

Answer your lender calls, keep current on your information, and contact your lender on a weekly basis. HOPEFULLY, you will be told that your loan modification has been approved. You will receive a package in the mail that may or may not need to be notarized. Follow the instructions, make a copy of the entire package for yourself and after you have sent the package off to your lender, make sure you contact them to find out if it has been received, then up-loaded into the system. You will want to continue to contact your lender to make sure it has gone to the proper loan officer and that it has gone “through”. Most lenders will NOT send you a ratifed contract, but here is a simple trick to make sure the loan modification is now in the system. Call your lender, go through the automated portion, you will hear your loan amount, your interest rate, your payment and your due date. If your loan has been finaled, you will hear the new terms you agreed to on the automated call. Also, when you get your new mortgage statement, it will reflect the new loan terms.

Hopefully, you are one of the borrowers that comes through this successfully!! Good Luck and remember, stay on top of the loan modification!! A successful loan modification will assist you in navigating through this challenging housing market.
I would love to see more successful loan modifications in the Oroville, CA area than foreclosures!!