Mortgage Loan Modification Tips For Success! Part 2
7. Keep your eye on the goal and stay positive.
By modifying your home loan, your mortgage lender is attempting to reach a target percentage of your gross income per month that goes to your house payment, typically 31%. This is known in the industry as your "housing ratio" which is the percentage of your gross income per month that is spent on your house payment, including; principal, interest, real estate taxes, homeowner's insurance, homeowner's association dues and any special assessment charged to you as the homeowner. Please note that the gross monthly income we are talking about is your qualifying income that you can document. If you are self employed, your qualifying income is derived from your last two years tax returns and your year to date profit and loss statement. Please be aware that not all of the employees in the loss mitigation department will be trained or familiar with how to calculate self employed income, if that is the case ask for an experienced supervisor or underwriter to calculate your qualifying income.
The main reason you should stay positive is because you have undoubtedly heard the unreal stories that people you know tell about how they got 1% interest for the life of the 50 year loan modified by their mortgage lender. Please understand and be prepared that these are extreme cases at best! (if they are true)
Typically, if your mortgage loan is modified, it will be less than you were hoping for so be prepared to stay positive.
8. Be proactive, not reactive.
Make sure that you come from a place of gratitude and be sure to thank them, thank them, thank them!
Try to start off every call with a happy upbeat positive attitude and voice...something like Happy Friday! I would call the same day and the same time each week and I would wish them a Happy Tuesday, wait for them to respond and suggest to them only four more hours to go! (The call center is on the east coast and the time I would call would be 1pm their time) This catches them off guard and they tend to let there guard down so you get their attention! If you can get their attention by interrupting their pattern in a positive way among the dozens of calls they get each day they are more likely to help you more!
You should be assertive, definitely, in this process that will test your patience. You need to try to keep an even tone and not get upset. Remember, you are talking to the people who hold your financial future in their hands and they are yelled at all the time! You want to be the exception not the rule! You want to be the person that they want to fight for not the person they want to get off the phone!
9. Try to get to know them.
Try to get to know the person you are on the phone with. They are used to being like machines in the call center, but they are people just like you and me. Try to find out about their family and activities they like to do outside of work.
Once you have built a good rapport with them, ask something like " are there any tips you can give me to get this loan modification approved?" or " I have never done this before, is there anything that I should be doing that I haven't done? Typically if you ask they will tell you, especially if they know you care about them.
10. If you are still frustrated with the process, ask for help.
You have an ally in your efforts to modify your mortgage loan, your elected officials. They are interested in limiting the number of foreclosures in your area and if they can help you, they will. It is not good politics to have a large number of homeowners losing their homes in your congressional representative's district. If your mortgage lender knows you are keeping your elected officials updated on your progress by phone or by copying them on each email you send they will tend to be helpful, sometimes very helpful.
There is nothing wrong with this approach as long as you keep everything as positive as possible.
My hope is that his helps you in your search for your mortgage loan modification!