Loan Modifications: Did You Wait For Months and Then Had Your Loan Modification Rejected?

The last three short sale listings we got this week were all from homeowners who had tried to get their loans modified and at the end of the day got rejected and turned down for their request for a loan modification.

For some of these people, it was a good 6 months before they knew the answer. 

What grabbed my attention the most is how these three homeowners should never have been put through the loan modification process because anyone with any knowledge of loan financing or the rules of HAMP would have known that none of these three homeowners were candidates for the current government sponsored loan modification program. 

Why in the world does it take up to 6 months before the homeowner finds out that they do not qualify for a loan modification when you could nip that one in the butt from the get go? 

There is a very fast way to save a lot of tax payer money and to save the uncertainty, anxiety and stress from those who wait such a long time to find out the answer to their loan modification request. 

Maybe if you are a bank, lender and/or servicer you will heed this one post with the advice that will help you get through the loan modification files sitting on your desks. 

Teach your front line customer support staff to ask two simple questions. You can even have the questions written down on a piece of paper next to them when they answer the phone or on their computer screen or even on a whiteboard in front of the operator crew. 

1. Is this home your primary residence? Are you an investor? 

      The HAMP program requires that the homeowner has to be living in their home and that it is their principle residence in order to qualify for the loan mod program. So the homeowner of one of our listings is actually an investor, ( such is the case with two of our sellers that just listed this week) which means they won't get approved for the loan mod. Dugh! Now, pray, tell me, why can't the person who takes the initial application for the loan mod request ask this one simple question? 

If they do not live in the house, then you say, sorry, you don't qualify and move on to the next request. But a short sale might be the right ticket for you. 

2. Do you have a job? Are you getting a steady income? 

       Again, this is a no brainer. You can teach a 3rd grader to ask this question and write down the answer. If the homeowner does not have any income he or she does not qualify for a loan modification. How can you pay your mortgage payment if there is no money coming in?

Why can't this be the first or second question asked before you waste all that time to process a loan mod request knowing it is not going to get approved at the end of the day? 

In the three listings we got this week- all of them were turned down for loan modifications, all of their requests took over 6 months to complete and now all three of them were told by their lenders to try a short sale. If they were screened on the phone up front, the lenders could have saved a lot of money for their investors and stockholders by selling now short instead of later. 

 

Fpr more information about how to do your Florida short sale, click here. 

 

   

 

To  view Florida Short Sales- Click here. We know Palm Beach County Short Sales and Port St Lucie Florida Short Sales and will help you get your home Sold if you need to Sell your home and help you buy your home in Palm Beach County Florida: Call us today.

 

   

 

 

                         

 

Copyright © 2009 By Katerina Gasset, All Rights Reserved.*Loan Modifications: Did You Wait For Months and Then Had Your Loan Modification Rejected?*