I have received a few emails from home owners asking me where to even start on asking their lender about a mortgage loan modification. The key word lies within the question....ASK!
The first step is to call your mortgage lender's customer service department and ask for the "Loss Mitigation Department". Do not even bother trying to explain yourself to the customer service representative. They will eventually send you to the Loss Mitigation Department anyway. So cut to the chase.
Once in the loss mitigation department, introduce yourself, give your loan number and other identifying information and then immediately ask "who am I speaking with?" and "what is your direct line in case we loose connection". Write this information down as well as the time and date. Communication Documentation is absolutely needed on your part!
Proceed to explain you are or may soon be delinquent on your mortgage and NEED to modify it before it becomes further delinquent or possibly go into foreclosure. Do not say "I was wondering if..." or "I would like to see if I qualify...". Be firm, yet polite. The Mortgage Loan Modification process is, simply put, a Negotiation Process. If you lay down and show weakness in the beginning, they will walk all over you. After all, the banks are looking out for their best interest, not so much yours. The point is to show that you are trying to be a responsible borrower, being PRO-ACTIVE, not RE-ACTIVE and show this is a serious issue to you.
The Loss Mitigation Department will note that you were inquiring and should send you or send you to (Internet) a Loan Modification Application Package. This will include a checklist of financial document they will want to see (bank statements, W2's, pay stubs, etc). They will also ask you to fill out a personal finance statement (what $ comes in per month, and what goes out). You want to show that you are hurting, yet still able to afford your payment if they modify it. They will also ask that you complete a Hardship Letter. This explains your actual financial hardship, what happened that brought you to this point.
After you complete this application package send it back immediately. Once again, noting time, date and who you sent it to and how. Follow up with and make sure they received it. You would be surprised how often they "never received" your information.
Once they have confirmed they have received your package, be patient. It will take anywhere between 30-120 days. However, keep calling and asking for an update every 4-5 days. If they call you and ask you for more information, send it to them immediately. DO NOT FORGET TO DOCUMENT EVERYTHING! Then you can always reference who told you what and when.
Once they present an offer to you, make sure it will actually benefit you before you sign anything! If you think it is a sub-par offer, tell them. Once again, be firm yet polite. This is where you will negotiate. Push as hard as you think you can, but don't expect the world. They still need to profit a little!
Good Luck!
The first step is to call your mortgage lender's customer service department and ask for the "Loss Mitigation Department". Do not even bother trying to explain yourself to the customer service representative. They will eventually send you to the Loss Mitigation Department anyway. So cut to the chase.
Once in the loss mitigation department, introduce yourself, give your loan number and other identifying information and then immediately ask "who am I speaking with?" and "what is your direct line in case we loose connection". Write this information down as well as the time and date. Communication Documentation is absolutely needed on your part!
Proceed to explain you are or may soon be delinquent on your mortgage and NEED to modify it before it becomes further delinquent or possibly go into foreclosure. Do not say "I was wondering if..." or "I would like to see if I qualify...". Be firm, yet polite. The Mortgage Loan Modification process is, simply put, a Negotiation Process. If you lay down and show weakness in the beginning, they will walk all over you. After all, the banks are looking out for their best interest, not so much yours. The point is to show that you are trying to be a responsible borrower, being PRO-ACTIVE, not RE-ACTIVE and show this is a serious issue to you.
The Loss Mitigation Department will note that you were inquiring and should send you or send you to (Internet) a Loan Modification Application Package. This will include a checklist of financial document they will want to see (bank statements, W2's, pay stubs, etc). They will also ask you to fill out a personal finance statement (what $ comes in per month, and what goes out). You want to show that you are hurting, yet still able to afford your payment if they modify it. They will also ask that you complete a Hardship Letter. This explains your actual financial hardship, what happened that brought you to this point.
After you complete this application package send it back immediately. Once again, noting time, date and who you sent it to and how. Follow up with and make sure they received it. You would be surprised how often they "never received" your information.
Once they have confirmed they have received your package, be patient. It will take anywhere between 30-120 days. However, keep calling and asking for an update every 4-5 days. If they call you and ask you for more information, send it to them immediately. DO NOT FORGET TO DOCUMENT EVERYTHING! Then you can always reference who told you what and when.
Once they present an offer to you, make sure it will actually benefit you before you sign anything! If you think it is a sub-par offer, tell them. Once again, be firm yet polite. This is where you will negotiate. Push as hard as you think you can, but don't expect the world. They still need to profit a little!
Good Luck!
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