About Short Sales

You won’t get a loan modification by waiting in line. It’s just too long. Get “out-of-line” by following my advice.

In the current Loan Modification Frenzy, the “line” is too long. Hundreds of thousands are in the queue ahead of you with more than 50,000 added per week. The banks can’t staff and train and manage and retain nearly enough workers and the systems and procedures are overwhelmed as well. Add to that the fact that the banks are only begrudgingly cooperating with the effort – and you have a formula for frustration and failure.

The front 4% of the line are getting good modifications. So, copy the winners, How do they do it? They get out-of-line and do extraordinary things. Previously I have described ways winners craft their applications and follow-up on the application to use what I call File Inertia. Let me now describe the way they escalate problems.

Because problems are an inevitable part of such a convoluted and broken process, effectively dealing with them is critical. I advise you to 1) Ask 5 Times, 2) Escalate Well and 3) Escalate Well Beyond.

1. Ask 5 Times The common problems are easy. For instance, if they misplaced your 4506-T Form, send them another one. If they request 3 months of bank statements instead of the usual 2send ‘em in. But, when you get information from the agent that is just wrong, and you can’t seem to get them to perceive it…That’s when you should Ask 5 Times. Call back and try another agent, 5 times. That’s right, it’s not worth it to try to prove your point and sometimes the agent is just not trained well enough to ever understand your question or concern. If you burn through 5 agents and can’t get the “right” answer, then ESCALATE.

Escalation means going up the chain of command. It means requesting that a manager or supervisor review the situation with you. Be sure to do this politely to minimize the snub to the agent but be firm. Simply say (to the 5th agent) “Please connect me to your supervisor, will you? This matter is just too important to me to let this go. I want to hear it from a supervisor”. Sometimes the agent will oblige and other times the agent will argue with you. I believe that sometimes too, agents will ask their co-worker to pose as a manager for the call. It may happen that the manager will have to call you back. Don’t hold your breath. Occasionally you will get lucky and a well trained and well informed manager will get on the line and provide some real value.

Escalate Well Beyond the Loss Mitigation Department. Perhaps departmental rules or guidelines have to be altered in your case. Often the individual departments do not have the authority to make exceptions. You should seek assistance and support from other departments, or from bank executives, regulatory agencies, politicians, trade associations or, maybe even the press. Don’t think that your problem is too small for any of them to care about. The secret to winning their support is to ask for it in a way that indicates you 1) have used all the correct channels already, 2) understand their role and have appropriate expectations for what they can do to help, 3) know specifically what you want them to do and 4) that you are the type of person who will not stop escalating if they fail to respond.

Escalations Well Beyond are effective. I’m amazed at the results. It seems that such interventions are always successful and the trick is in convincing the person to get involved.

So many people are impacted by the housing market meltdown that most are sympathetic and will be interested in helping if they can. So, ask well and you will likely get support.

Rockwood is an author and foreclosure expert. He has written extensively on loan modifications.? Visit Rockwood’s site about DIY Loan Modification at Home Loan Modification. Unique version for reprint here: 2011 Loan Mod Problems – Escalate em!.

The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, according to the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

Assistant Treasury Secretary, Herb Allison gave his opinion. “Borrowers were more likely to re-default when their monthly payments aren’t reduced enough in modifications to make staying in a home affordable. Our data show that when you reduce payments by 20 percent or more you have a tendency for lower re-default rates,” he said.

This is bad news. If you are looking for Jacksonville Loan Modification Help, don’t become a statistic. Here is why this is happening. Many homeowners get desperate and accept a loan mod they can’t afford.

Are you negotiating with your lender to reduce your monthly payment? Before you start, run your budget. Figure out what you can afford to pay each month. Decide on the highest monthly payment you will accept. Draw a line in the sand. If you can only afford $800 a month, then don’t accept a $1,200 payment.

The second loan modification is much harder to obtain. Lenders are reluctant to reduce your payment a second time, because they think you will default a third time around.

Review all your options to avoid foreclosure. Research your local housing market. Many people have been able to rent a house for much less than their mortgage payment. Here is one example. A couple owned a house with a $1,400 monthly mortgage payment. The home’s value had dropped by 50%. Their lender wouldn’t reduce their payment.

They found a nicer house to rent for $850 a month. This is one option. If you want to keep your home, you need to negotiate for a payment you can afford. Do not let your lender push you into an unaffordable payment.

Not being able to afford your home is tough. You are stressed out. You and your spouse might argue over money. You might think about your problems when you are at work, which might affect your ability to do your job. You then risk getting let go. Where will your lender be at that point? This is why it is in the lender’s best interest to reduce your payment where you can afford it.

Our loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info at Jacksonvilleshortsaleblog.com

Thanks for reading this, Chris Curry.

Chris is a real estate agent at Keller Williams Realty.

Phone: (386) 719-2330.

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Jacksonville FL – A forbearance is when you catch up all your back payments and continue paying your original mortgage payment. This is a good option for many. However, it doesn’t reduce your payment as much as a loan modification does.

Most lenders are glad to negotiate a forbearance. The one advantage is that the process is much shorter. You avoid the lengthy and troublesome loan modification process. A forbearance can normally be approved in two weeks to a month. Contrast this with the one to six month process associated with loan modifications.

The big drawback with a forbearance is that it doesn’t reduce your payments. In fact, the first 12 months are tough. Here is why. You are re-paying the back payments during those 12 months.

This means your monthly payment actually increases. If you were paying $800 a month before, you are paying $1,150 during the forbearance. Many homeowners accept a forbearance only to default because they can’t afford the higher payments.

A good loan modification is what they really need. However, the lender will be reluctant to approve it. Why? Because they already defaulted on the forbearance. This is why I recommend you only ask for a forbearance if you can afford the higher payment.

Was the original reason you defaulted because you could not afford the payment? In this case, a loan modification is a better option. Our loan modification kit has the instructions you will need to get a loan modification approved.

To get more info go to jacksonvilleshortsaleblog.com

Thanks for reading this, Chris Curry.

Chris is a real estate agent at Keller Williams Realty.

Phone: (386) 719-2330.

Chris Curry and his team specializes in loan modification assistance and short sales in Jacksonville Florida. Jacksonville Loan Modification Help, Jacksonville Short Sales, Jacksonville Loan Modification.

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