You can do your Own Loan Modification?
I have repeatedly been asked by potential clients and other friends if they can do their loan modification. The quick answer is yes, they can. But the next question is how they can? Well, first thing is that Loan modification is difficult and there are stumbling blocks on each phase. The first contact is difficult. The good news is that banks have hired more people for loan modifications and the process appears to be simple, but in fact, it is becoming more and more complicated. There is still old mentality of saying No, and it is the easiest thing to say No. No, has very little consequences. A Yes, means more commitment and more work, and these folks does not like to work.
A Word of Caution
Even if still you like to do the loan modification yourself, please take care of the following steps.
1. Write a good economic hardship letter starting with changes in your job, hours, pay scale, and then your spouse in a similar way.
2. Make sure you approach the right section of the bank. Only talk to the Loan Mitigation, Home Retention, Loss Mitigations. Be careful about not talking too much with the Debt Collection People. They get commission when you pay your delinquent amount, and they have no authority to offer you in return.
3. Don’t be evasive and procrastinate in responding to your mail. Answer them and keep communicating with them.
4. Make record of each and every document you send them. It is good idea to write a journal of all your mail received and sent.
5. Get full name, extension number of the person you spoke each time you contact them or vice versa.
6. When informing them about your financial situation, don’t give too negative a picture of yourself and your income. In fact, you have to tell them that you are still credit worthy and income producing individual, who is temporarily in trouble.
Hopefully, these tips would help you.
Not that I mean to be disrespectful but these are still what I call”over the coounter medicine” which may be good if you have a headache or common cold, but what if you have problem of (god forbid) liver diseases, pancrease, or heart issues or some major problems, and now you need a prescribed drug, see a doctor, a pharmacit and labs need to be done. That is why a qualified licensed attorney who is familiar with the laws of RESPA, TILA, HOEPA, can be very helpful to you.