Who Should You Refer To For Modification Loan?
Who should you speak to when you call your lender for modification loan? If you are having problems making your mortgage payments, the first thing you should do is speak to your lender so that you can work out some sort of agreement. Unfortunately, many borrowers do not follow this rule.
Studies show that at least fifty percent of borrowers who have defaulted on their mortgage loans or missed a payment never even contact their Lender.
Banks are not in the business of property investment or property management. They do not want to “take back” your property! They are more inclined to work out an agreement with you so that they can receive mortgage payments and you can stay in your home, rather than go through the foreclosure process which can be costly and expensive.
Although it seems overwhelming, you must make that first phone call to your mortgage company so you can find out what your options are and what you should do for next. But what department do you speak to? Who do you ask for? The first thing is to understand how Banks and servicing companies work and what department you need to concentrate your efforts on. This will depend on what stage of the default process you are in.
Firstly, there is the customer service department who usually answers any general inquires and are able to help you with your account if your account is current. But if your account is not current, then you will need to speak with the second level contact department.
The second level contact is the collection department. This is usually the first department that you are transferred to when your account initially becomes delinquent. This department has one major purpose, and that is trying to collect a debt. They are trying to get you to pay any money that you might owe the lender and are not in the business of negotiation.
The next level which is the most important, if you are trying to get your loan modified is the loss mitigation department. This can also be called loss prevention, loan modification, Work out department or loan resolution or foreclosure prevention department. In the end they all mean the same thing – that is helping you to work out some agreement to pay your loan.
It is very common for these departments not to speak with you initially. Many banks prefer for you to speak to collections first and do not give out any direct numbers to the modification departments. But you must be persistent. Some banks will even tell you that they don’t have a mitigation department. They all do!
The Lender’s Loss mitigation specialists are usually mortgage loan officers who will look at loans on a case by case basis to see if they qualify for modification loan purpose. It is important to remember that not all loans qualify for modification.
The Last Department is the “Home Retention” Department. Not all banks have this department, and some will simply have one “Loss Mitigation” department that handles all cases which have gone into default, no matter what stage you are in. This department is essentially the last stop before they start the foreclosure process. They will usually be able to offer a last resort to foreclosure.
You must remember that if you are going to contact your lender, you will generally be on the phone for a very long time and may be transferred many times. Your patience must be there. But if you know which department your loan will be handled by, you can cut this time short.
The best thing once you have been transferred to the right department is to get to speak to some one who can be the contact for you on your case. This way, you are always speaking to the same person. Just make sure you have their direct extension as well as their fax number.
Each time you speak with some one make sure that you write down their full name or ID number as well as their department and the time that you spoke to them. So long as you are persistent and reiterate your intention to each individual to make sure that you are speaking to the right person you should achieve your goal!
I know that this was a long article, but we often get asked this question, so we wanted to give everyone a good understanding of what to expect! Hope you can archive your goal, not get into foreclosure, or maximum your capital gain or increase your rental return for your buying investment property. To get even more information about modifying your loan, click here.
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Great post and very true a lot of people bury their heads and as a result the problem gets worse. The course of action is to communicate with your lender and work together. This way they are much more likely to be able to help. In some cases they can agree a lower repayment for a period of time to make things more manageable.
Loan modification is especially needed at these times where a lot of people have experienced a long-term decrease in their income, monthly expenses have increased due to the unstoppable rising of commodity prices, and there is so little time left for people to earn more to pay their mortgage dues.
LLCS
http://www.lucaslawcentersite.com/
Loan modification is especially needed at these times where a lot of people have experienced a long-term decrease in their income, monthly expenses have increased due to the unstoppable rising of commodity prices, and there is so little time left for people to earn more to pay their mortgage dues.
I must admit that your post is very good and very information. Obviously you have to work with the guidance of your lender to getting good results.
Burlingame realtor
The current market scenario has brought everyone on his toes. One should be careful before investing in real estate. Do confirm prices by other builders/other sources.
Idaho Real Estate
loan modification…
U. S. home prices were down 18. 1% in the year ended April, according to the national Case- Shiller home price index released Tuesday. On a month- to- month basis, prices in 20 selected cities fell 0. 6% in April, with declines in 11 cities. Still, the…
Great advice for the average consumer!
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