After dozens of submissions for Loan Modifications for our friends and family…as well as our clients, we can confirm this….
In our experience, a loan modification is either Granted or Denied. The terms of the loan modification are solely up to the servicer. Investors that own the loans have their own rules and principals that the servicer follows.
Example: The “Making Home Affordable”(MHA)program , rules are set by the federal government. Unfortunately, these rules DO NOT override the investor rules…
If the documents governing the servicing of a particular loan — known as the Pooling and Servicing Agreement — prohibits a particular modification, the MHA program will not help.
Considering a loan modification?
Don’t fall for the Loan Mod firms advertising they have “Knowledge and Skill” negotiating favorable deals with loan servicers! there are firms that will handle the process for you…it can be overwhelming and it may be worth the money charged to manage the process…
You can do this, it does take time….
Make sure you have communicated with your servicer Exactly what documents they require to review for a Loan Modification.
Don’t get confused and start talking to the “work-out” department, that is NOT a loan modification.
Follow up at least once a week to make sure that everything the servicer needs is in their hands.
Take notes and write everything down when you call to follow up…date, name and what they told you.
Be patient, it will most likely take you at least 45 days to get a response…Granted or Denied. If your granted a loan modification, you will at this point be given the terms offered to you by the investor.
