First Steps to Start you Loan Modification Process
Loan modification should not be complex. Really it is just a few forms to fill out and they are not even that hard, but believe me it is not the forms it is the negotiations and legal wrangling that make it hard and should be handled by a loan modification firm such as ours.
However, there are steps that you can take to start the process on your own.
1. Contact your bank, not on the phone, in writing. Banks do not have to respond or even listen to you on the phone, but written correspondence needs to be addressed by law and in a specified period of time. Always write or fax your requests.
2. When you write we suggest you hand-write your fax or letter to get more attention. It will make your plea more real and more distinctive.
3. If you have accounts with the bank you want to negotiate do not close them just drain them and put them in another bank. No sense in giving them strength by having easy access to your bank account and knowledge of your finances. They cannot tell how much you have in another bank or safety deposit box but they certainly know what you have in their bank!
4. Hire a loan modification firm such as ours to do your negotiation and protect your rights. Really the forms to start the process are easy, and even talking to the bank is easy but it is not the talking or the forms that make a difference of how much modification and loan reduction you receive; it is what you say and how you say it and how many mistakes you find in your loans that help give you power over your bank.
5. Always hire a loan modification expert that can do a loan forensic audit on your loan. You see most loans have mistakes that can make them illegal and give you a great deal of power over the bank. Can you find these mistakes yourself? Yes, unlikely you will find all of them, but many you can by just reading a few books on the subject, however, even knowing them is not enough; the skill is knowing how to use them in negotiations with your bank. Forensic loan review must be an essential part of your loan modification firm’s offers because it is a very important part of the negotiation process. So ask for them. In fact we feel so strongly about this that for those that still decide to go at it alone we offer a loan forensic audit stand alone package that finds the mistakes for you, even the often missed ones, and give you a report of the mistakes and offer specific advice on how to use them to negotiate with the bank and gain the most from them. Not all loan modification firms offer this level of service, when you hire one, make sure they do. And please do not be fooled all lawyers can catch mistakes because they know the law but some are hidden from most eyes so make sure your firm has loan professionals that know the ins and outs of the process.
6. Once you hire a loan modification firm make sure to tell them the truth, the whole truth, and nothing but the truth. Since most of the firms have a law firm associated with them, this information is protected under fiduciary laws and you need to be absolutely clear with them about your finances so they can give you the best help possible. We have had clients that have neglected to mention certain things that have put the mortgage modification deal once made in jeopardy because the bank found out about it. So be clear and open with your firm so that you can get the best results from their efforts.
You can easily start the loan modification process on your own and there are certainly plenty of books that do a great job at helping you do it on your own. However, it is unlikely that you will get as sweet a deal as an expert for it and paying an expert to get better terms is saving money if they can achieve great cost reduction than the money you paid and then the ones you could have achieved on your own. Consider that when thinking of how to proceed in your David vs. Goliath fight with the bank because the banks know about the stone and they have huge helmets to protect them!