A loan modification is the first step in keeping your home, during turbulent times. Keep in mind that a loan modification can take up to 6 months or longer. Be patient and persistant. For free counseling go to www.HUD.com.
I hope that these simple tools will help you to be successful in your loan modification. Before you decide to short sale, start with a loan modification or workout plan. Often this can allow your payments to be dropped for the period of the workout plan.
#1 Get a calender or a day planner or make a call log to document the times and dates of each communication. Most computers have programs. www.avery.com has free templates available that you can download and print under calenders. Or you will need several yellow pads or notebooks to take notes. Make a box or file keep everything together.
#2 Get 4 months to 6 months worth of your expenses and assets together: Bank statements, paycheck stubs utilities (phone, cell phone, power, trash, water etc.), credit card payments, auto expenses. Break it all down in expenses and assests in your note book. and keep your paperwork together as you will need to fax or mail COPIES with your packet. You will need to refer to this paperwork during the process. you may need the past 2 years of taxes. If you do this before you call, this will help you get information to the financial institution's customer service at the time of the first call.
#3 Call your financial institution and ask about work out plans available to you. They will ask your for your financial information over the phone. (see you already have it together and this will save you time and stress). Most institutions now have the workout plan on their websites for you to download and print.
#4 WRITE DOWN THE DATE, TIME AND THE NAME OF THE PERSON YOUR TALK WITH AND A BRIEF SUMMARY OF WHAT WAS DISCUSSED. (make a call log in your notebook or day timer and do this every time you call)
#5 Continue to get the workout package together and send it either by by fax or certified mail. Get a fax confirmation receipt, the time, date, fax number, how many pages were sent and sent confirmation will be on, attach it to the documents. If you mail the workout package, send it certified mail, you have a receipt that it was recieved by the financial institution. (each time you send paperwork to the financial institution get a receipt)
#6 Document everything. Keep your paperwork in chronological order with the newest information on top working backwards. You will often have to refer to your call list and sent document confirmations.
#7 Call Every two weeks for the first 30-90 days on the same day approximately the same time, after 30-90 days begin calling every week on the same day and same time. When you call - Set aside at least an hour so you are not rushed. Remain calm and state clearly why you are calling, what it is you need and make sure you are clear on what the financial institution needs. You will speak to a different person each time you call, if a man answers, hang up and call again. If the person you get is not helpful, hang up and call again. Each customer service rep will be different, you want someone who will be polite and straight forward so you can get the facts and get done what you need to get done. Each time you call the customer service person will read over the previous notes left from your previous phone call. Have your call log in front of you, as their may be a discrepancy in what the customer service rep tells you to do. Sometimes you will be told that someone will call you, call the next week anyway! If they tell you will be receiving something in the mail, call next week and see if it has been sent.
Often the reason a loan modification does not go through is because of a lack of communication. Don't let this happen to you.
You are the one that is going to make this happen, Stay on top by calling often, ask questions and get clear direction. If you do not understand, ask until it is clear to you what you need to do. Take the drivers seat and the loan modification should be smooth and successful! Good luck.
*This post is meant only as a tool to help navigate a difficult process, this is by no means a guarantee.
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