Getting a loan modification can be anything but straightforward. These tricks can help you maximize your chances of navigating the process successfully.
Your Odds of Success
Through most of 2010, fewer than half of all loan modifications were successful. Knowing your odds will eliminate any unpleasant surprises.
The Home Affordable Modification Program (HAMP) is a voluntary program in which only Fannie Mae and Freddie Mac lenders are required to participate. Other lenders only participate if they want to. What that means is they can make up their own modification strategies and rules as. In addition to this, constantly changing rules make it difficult for mortgage lenders to update their procedures and thus train their employees accordingly.
Homeowners seeking HAMP modifications often report constant miscommunication and loss of documents on behalf of HAMP.
Here are some ways you can help your cause:
- Keep a file of everything you send to HAMP
- You should update and organize your file on a weekly basis.
- Weekly, call the lender in order to get the status of your modification.
- Make sure you pay your trial payments on time, every time.
Educate Yourself About the Latest Loan Modification Guidelines
Don’t assume your lender’s loan employees to be well versed in the latest guidelines. Don’t rely on their knowledge – do your own homework on HAMP. It is very common for applicants to receive different interpretations of the exact same rules from different employees within the same company.
If Denied – Reapply
HAMP guidelines do not include provisions for an appeal process. But you should know you are allowed to reapply after a denial if your circumstances have changed.
A mortgage modification can be worth the hassle because a successful loan mod can save you a lot of money as well as your home.
Persistently following these tips can maximize your chances of approval.