Three Crucial Things you SHOULD know about Loan Modifications
There are many unspoken rules and lore about the loan modification process. There are things that professionals cannot discuss with you but that you hear through the grapevine or through experience in dealing with the banks directly. There is no help for weary out there with the banks. They are entrenched and overworked and the customer service people are overwhelmed and callused from hearing so many crushing stories of desperation from their customers.
One of the things you must know is that if you have not started defaulting on your payments, your loan modification request will go the bottom of the pile. In fact some banks will tell you flat out that you cannot do a loan modification if you are current with your payment. No wonder the system is broken. When they can get you to start the process before they start losing income, they basically encourage you to stop making payments on your loan so you can be heard, not directly but with their bad attitude and some of them telling you directly that you cannot start if you are current on your payments.
You do have a powerful tool and the law is on your side. Banks do not have to log or even pay much attention to phone calls, but they must log every paper that comes to them by law. There are laws stating the time they must handle written requests in and the procedures for doing so. Banks by law must respond to written requests. They cannot forget about them, burry them (there is always a paper trail), or ignore them and not respond—the law requires them to respond and not just respond but respond in a timely manner set forth in the law. To get your loan modification issues resolved always write or fax the bank, they must listen to you then and do it quickly or you have cause to sue them. To get your rights better protected and potentially get better terms hire a loan modification expert, it really may save you a great deal more than you pay.
Banks hate lawyers but they hate loan professionals such as mortgage brokers even more. Why? Well they can spin many lawyer’s heads with numbers and they can offer deals to them that may carry hidden fees or some obscure terms that they write into the agreement that can dramatically affect your modification is a few years. However, when loan management professionals are on the case, these little shell games banks can play are no longer available to them. Loan brokers know loans often better than most bankers because they have to know how to get them through the system, bankers often know the most common terms and laws, but brokers know them all because that is how they make things happen. It is harder to bamboozle a loan professional and there is no spinning their heads with number and making a deal sound better than it is because no one knows a deal better than a loan broker. Lawyers are necessary, without them the process might work but the legal issues might spin out of control, but to negotiate the agreement with a bank find help from an expert in loans such as myself. The lawyer will draft the final papers as it should be but the hard out fight with the bank over the terms is best done by people who speak their language.