How can I accelerate the loan modification process?

Due to the volume of applications the lenders are dealing with, and the amount of people requesting a loan modification or foreclosure assistance has increased so drastically it has been extremely hard for the lenders to keep up. This process from beginning to end can take up to 30 days to 7 months to complete, depending on who your lender is and what their volume and practices are.

I’ve been doing this for 3 years now assisting home owners with modification applications and I have pretty much seen it all. So ask me about shortcuts? How do I get myself bumped to the front of the line? Here are some tricks of the trade!

1) Submit a complete packet!! Do your homework!!

2) Submit current information (i.e. paystubs, bank statements etc...)

3) Know the list of supporting documents your lender will want

4) Sign and date everything! (i.e. tax returns, hardship letter, 4506 T, RMA).

5) Follow up!! Once you submit your packet don’t want 3 weeks to call!!! Usually it takes any where from 24 hours to 72 hours for your information to be received, and logged to your account. Make sure the lender has everything they need!

6) Follow up again and again! Once you have confirmed the lender has everything, you will want to call every 2 weeks to check in.

7) Ask questions like:

When was the last time someone was working on my file?

*if it’s been over a month and there is no activity on your account this could be cause for concern. Have the representative send an email to the underwriter or what is called an escalation email.
When was my filed assigned to an underwriter/processor?
Is there an estimation date of completion?
Has there been title or a BPO ordered? *BPO stands for Broker Price Opinion similar to an appraisal the lender will use this to determine value of your property.

8) Return phone calls and submit missing/updated information in a timely manner!!

*If the lender calls you or sends you a letter, requesting information, do not wait 3-4 weeks to send it in. Usually lenders will keep files that are in complete ONLY open for so long before they cancel, or close out your request and if that happens you have to start all over again!

9) Follow up, follow up, and follow up! Always follow up on status, follow up to make sure the lender received your information. Stay on top of them!!

10) Reach out to your local congress: You can send a letter to your local government Congress man/woman and explaining you have applied but have not heard back from your lender. Sometimes if you’re lucky your local government will contact your lender on your behalf. I have seen this work and people have been pushed to the front of the pack.