Is Your Application for a Home Loan Modification Going Nowhere?

If You're on the Edge of 
Having Your Home Repossessed

Or you know of someone else who is, then you're also aware the long, bureaucratic paperwork process involved in obtaining a home loan modification from your lender. The most common method is to make an application using the Home Affordability Mortgage Program (HAMP), however lenders will also accept loan modifications from their mortgage holders as lenders don't really want the house back, they're just looking for their money.

In a lot of cases, however, the modification process takes much more time than many homeowners have. Although it does not need to be that slow, although there are answers for mortgage holders whose applications seem mired down. Obtaining a loan modification could turn into an extremely stressful course of action.

Even if you submit all the documents and your mortgage lender says that everything's okay, in spite of this you may still undergo much anxiety due to the fact that you are not aware of what the mortgage lender is doing in the processing of your loan application. You may have zero information what the next phase might be and how much time it takes to get through each step of the process. Your lender may inform you of what the next phase is, although you may not grasp why it is taking so much time. However, there are causes, why the process might become mired down, and there are some ways to keep the process moving along, if you have some basic knowledge of what goes on in the background.

Tips for speeding up the process include: Include the Account Numbers. Many times when you fax the paperwork in to your mortgage lender, the mortgage lender either says your paperwork was lost or they didnít receive your paperwork at all. This doesn't because they're incompetent. Itís because thousands of faxes are sent in each day, while they employ image scanning devices to capture all of them and store them in the correct file. When using that kind of system, by using a cover sheet which contains your account number, the documents will be correctly placed, although any sheets of paper that follows may not have your account number so they may easily be misplaced. The answer is to be sure your account number is on every single page of your documents, so the odds are better for getting all your documents in the correct file.

Complete all the Paperwork. As your file is turned over to a document supervisor, most often around 30 days subsequent to you first submitted the loan modification, the document supervisorís task is to go through the paperwork to be sure all the required paperwork is ready to be sent on to the negotiator or specialist for their review. If your file is incomplete, even if just one solitary required document is missing, the document supervisor will mark your account as being incomplete and go on to the subsequent file for review. It's during this situation, a generic form letter is mailed automatically to your home asking for the additional information missing in your file. This form letter can take as long as two weeks to reach you, and then two to three weeks longer before they even get to your updated paperwork. The answer is never send your lender an incomplete package. It can result in delays or yet a flat rejection.

Follow up with your lender weekly to make sure they have every document they need and they are current. Donít be concerned about becoming a pest. After all, your home is on the firing line if things bog down. By consistently doing this, you'll will keep from getting caught up in the delay process.

The procedure is similar to any other, although it can be caught up with simple mistakes and bureaucratic oversights, Although if you do the proper steps to decrease the opportunities for mistakes, your modification application can move along through the modification process much quicker and you will have an improved chance at being accepted. By Gene Wright

New Article Sep 1, 2011

Real Estate Finance