Yes, one can do their own loan modification. There is no pressure to hire someone to do your loan modification. If you become sick, you can also go to Save-on Pharmacy, and buy over-the-counter-drugs, and see if that can cure you. It may, if you have a common cold, or flu. But what about, if you have (God forbid) liver diseases, or pancreatic problems, or cancer, which is proliferating like jungle’s fire in USA. I hope and pray that a medicine is found in our lives for this horrifying disease. The foreclosure is one such cancer which is eroding our home values, destroying the family nucleus, and otherwise making us distrustful of the whole situation. Our homes are not American Dreams anymore, they are becoming an American Nightmares, unfortunately.
First rule is persistency. As long as you are persistent and can talk to your lender in persuading them for modification, there can be good result. Make sure you do not lose consistency in your approach. Call them regularly and take down the names and the date and time. But the problem arises that all of your lenders are swamped with loan modification requests. Their phone lines are jammed with impatient borrowers talking to them in angry tones all the time. That causes lots of frustration on both ends. Remember, you are talking to someone who is hourly paid and most of the time anywhere from $10 to $12 dollars an hour. He/she has no incentive to produce anything tangible in this short period of time. You can complaint to his/her boss, but both of them are new on the jobs and most of the borrowers’ expectations are very high. Even though most of the borrowers had not sent their mortgage statements, and if sent it, it was some twelve months ago. They are good in a discussion of rights and wrong. But remember, this is an unending process and you loan modification has to fit their changing needs and expectations as well. Again, you had involved professionals before in your home any way. Let me refresh the professionals who worked on your home.
–You have hired a real estate broker or sales person.
–You have hired a loan officer.
–Your escrow officer was a professional.
–Your mortgage broker was a professional
–Your appraiser was a professional.
Remember, you had hired professionals on every step of your home purchase. Now, why not to hire someone who knows this field in and out and can be a dependable asset for the protection and viability of your home. Please do not hire anyone who does not know this field for small amount of money. These scam artists are the one who destroyed this home industry in the first place. Also, please see my article under how to write an economic hardship letter. Follow the fine points there, but make your own hardship letter.
When you talk your lender Thursdays, and Fridays are better days. Make sure you write a journal, and take down the name, phone and extension (or employee number) who you talked and time of the day.
Make separate notations for fax numbers because each section in your loan modification may possibly have different fax numbers.
Also, the customer service 800 number and the loan modification 800 number can be different. If you start with the customer service (usually there is not much liason between these departments), you have to listen to all those pitched professional debt collection tactics. It is better to call the right people in the very first time. Be polite to give and verify all the information about you. This is just standard practice about your information. Please just don’t presume any hostility toward you. It is just the way your lender is doing practice. Remember, all in all they are debt collectors, and you were behind on your payments. So don’t expect too much courtesy, and don’t get upset and forget your razor sharp sensitivities somewhere else. It is not the time for all that.