Mortgage Modification Rejections Can Be A Good Thing

Rejection has become a way of life to applicants for mortgage modifications. The lenders have made very little progress in improving process performance in spite of over 18 months of financial incentives from the Obama Adminitration’s Making Homes Affordable Modification Program (HAMP). Applicants, even very well qualified ones, get rejected routinely.

These days, rejection of your mortgage modification is a very good sign! Of the modifications that we have successfully mnaged for clients in 2010, not one single application was granted without a prior rejection. You read that correctly – every one of the modifications I have completed for clients in 2010 has been rejected before being accepted. Even applications that initially were grantedTrial Modifications resulted in a rejection of the permanent mod before final acceptance. Some of them were rejected as many as three times before being granted! Wow!

The application process alone is daunting. Then, weeks of follow-up is required to keep the application on-track. Now, in addition, homeowners must also become expert at overcoming the rejection objections that lenders throw in their way. That means being able to tactifully escalate problems to supervisors, managers, directors, VPs, and CEOs. That means being able to mobilize local congresspeople, regulatory agencies and even the press! It’s a challenge!

But, hey, quit with the whining! That is the way it is – so cope! You will get rejected for one of about two dozen common reasons. Sometimes I think they are posted as a type of “cheat sheet” on the computer monitors of new Loss Mitigation Agents. Things like “Your loan investor does not participate in modification programs”, “Failed the NPV calculation”, “Income too high”, “Your income is too low”, “You have too many assets”, “Your 4506-T has expired”, “Your Ratios are wrong”, “You did not provide updated docs”, “We need a note from your mommy (O.K., I made this one up!)”, and etc., etc., etc.

These reasons may be valid but all too often, they are simply erroneous, resulting from lender mismanagement of the file. Othertimes, they are patently untrue statements that slow or end the application process if you do not object. So, rather than be discouraged and give-up when you get rejected, press on. At least you’re not being completely ignored! Promptly get clarity on the reasons for rejection. Go through several agents (by simply calling back at different times) and then escalate to a supervisor if you must to get a straight answer. Then supply the missing documents, sign the updated form, or correct the typo on your income. Do whatever it takes to get them back on track. Request reconsideration when you submit the correction. If you have submitted a good and accurate application upfront, you will – eventually – get the relief that the mortgage modification programs are intended to give.

So, don’t be dicouraged when you get rejected for a mortgage modification. It’s significantly better than getting the dreaded “Your application is under active review and no further action is required of you at this time. Please call back in 10 days”. Oh, it’s even hard for me to write those words! Rather, take the rejection as encouragement that you are actually getting some traction and will likely get approved very soon. Takes a lot of perseverence, eh?

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Foreclosure Workouts – Negotiating Tips

Most people hate negotiating! Do you? Some people are actually good at it, but most people aren’t. And, most of us do not like doing it at all. But, when your home is at stake, like when you are negotiating with the bank for a loan modification or other workout solution…it’s critical. And, you can be a much better tele-negotiator if you follow these nine rules. These are good practices that come from many years of tele-negotiating with opponents about foreclosure and debt settlements.

1. Control your ego Be sure to Listen twice as much as you speak. After all, that is why God made you with gave you two ears and one mouth! Talking, you give away information. Listening, you gain information and knowledge. Ask questions that lead to lengthy responses and listen a great deal.

Do like Lieutenant Columbo, the famous TV Detective. Avoid mind games with questions and listening your opponent into submission. “Do a Columbo” on them.

Don’t be a smarty-poopy pants. We all know what this means. Imagine that the negotiator is your son, or a neighbor kid that you like quite well. Don’t talk down to them and don’t set them up to be embarrassed in any way.

2. Do not let rude behavior offend you. They try to offend you. They try to distract you and put you off-guard to make you want to get out of this situation at any cost and fast. Understand? Don’t succumb to it. Simply hang-up in the middle of a sentence. That is better than to lose your temper.

It always amazes me how difficult it is for well-mannered people to simply hang-up the phone on a collection agent. We keep trying to bring the conversation to a cordial close…that’s what civilized people do, right. Reject that notion. When you need to end the call, just do it with a “click”. Do it before you lose your cool.

3. Be prepared. *Know the strengths/weaknesses of your position and theirs *Think about the motivations of your opponent *Know your alternatives and theirs *Establish in your mind the goal for each encounter *Recall that time is really on your side…IF you have control of the cash flow

4. Always be willing to walk away. This means walking away from each conversation without an agreement…not walking away from the entire deal. You want to negotiate until the deal is right. That’s when you will get the best settlement.

You will get the best settlements if you are patient and wait until the deal is just right.

5. Focus on the Agent – their pressures and their needs. Don’t focus on just your own needs. Remember, they need to close this file and move on to other files. Offer to fax to their personal number or to email directly to them. Always be prompt and complete on all your responses to their requests. Help them do a good little job!

Be sure not to “talk-down” to the agents. Most people do – and the agents kinda expect it. They deal with angry people all day, so be nice to them. It will pay off.

6. Don’t give anything away without getting something in return. Count every item offered to be “won” and do not allow any to be taken back without a concession in kind. They will carefully document every offer. You should, too.

7. Be clear about what you want. Ask for a certain dollar amount. Build rationale around your request, like “that is 31% of my household income,etc.

8. Don’t Lie. Lying is wrong and it always seems to trip me up!

9. Write Things Down! “He who has information wins.” Keep good records of what is said, by whom and when. I included a Journal in my book…use it like a daily diary of each conversation.

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The New Loan Modification Remedy For America

The United States Loan modification has appeared due to the economic recession currently in progress. Because of the recession underway, almost six million homeowners about to face home foreclosures. Consumers have also stopped spending as much money.

Loan modification has been created by President Obama’s administration as a way to remedy this situation; if used as it is intended to be, this well-organized plan could play a significant role in the recovery of the economy.

President Obama’s Home Mortgage Plan makes it possible for everyone interested to obtain a 30 year mortgage with a fixed interest rate of 4.5%. Current homeowners can obtain refinancing with a low interest rate of the same 4.5% as well.

Unlike refinancing, loan modification does not start the process of a new loan. It is simply a change in the conditions of the existing loan. There are even some great incentives to encourage lenders to participate in the loan modification process. These incentives include:

1. The government pays part of the cost for loan modification for the lender to do the modification, thereby lowering the borrower’s cost from 38% of their gross income to 31%.

2. If a borrower is responsible about paying on the loan, they will receive $1,000 each year for up to five years.

3. The lender will get as much as $1,500 in return for a qualifying loan modification.

4. The U.S. government could subsidize up to $10,500 per home.

Some overall benefits to the economy through The Obama Loan Modification Plan are listed here:

1. People will save money through the reduced interest rate they will receive upon qualifying for a loan modification plan.

2. Borrowers are lured into choosing the program because it offers them cash incentives.

3. Additionally, the program guarantees $1000 for the original loan modification combined with another $1000 for three years. However, you have to pay your dues in a timely manner without defaulting in order for this to be the case.

4. Finally, if the desired percentage of monthly income cannot be met, the program tries to lessen interest charges and lengthen the term of the loan instead.

As with just about any loan, you need to fit certain criteria to qualify for a loan modification plan. Two things are very important to qualify: You must be the prime resident of the home and your loan should not date further back than January 1, 2009.

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Loan Modification Services Offer Foreclosure Relief

The huge 75 billion dollar bailout back in February was supposed to provide funding to help provide foreclosure relief for millions of Americans behind on their mortgages. However, the number of people who have actually been helped by the program is dismal. The government hopes to pressure banks into processing more loan modifications for borrowers.

[I:http://www.uniquearticlewizard.com/extras/pics/championseo1image10.jpg]Only about 1,700 homeowners have succeeded in getting permanent loan modifications through the program since it began in February. According to the banks, people are not turning in their forms so they cannot process the applications. If I was losing my home, I’m sure I would find time to fill out some paperwork to try to save it. That must be one huge stack of forms.

There are around 375,000 people who should qualify for the loan modifications but over 60%, or 225,000, of them have not turned in their paperwork or have turned in only part of the paperwork. But are the people who did turn in their forms doing any better? It sure doesn’t look like it.

If over 225,000 people didn’t complete their forms, there were a bit fewer than 150,000 who did. About 50,000 of the people who completed their applications have not heard anything yet. Of the 100,000 who have, roughly 1. 7% actually got permanent modifications to their loans. That’s a pretty pathetic figure.

The government is now trying to get banks to get more loan modifications processed. SWAT teams are being sent to the banks from the Treasury Department to oversee how the banks are handling the loan modification applications. The department plans to publish a list of lenders that are not doing enough to help borrowers next week in order to get them to approve more modifications.

If you’re counting on Obama’s foreclosure relief to save your home, it’s probably best to start looking for a loan modification attorney to help you. Participation in the foreclosure relief program was never made mandatory as a condition for taking the bailout money. It’s too bad the banks haven’t been more cooperative, but it really isn’t all that surprising. After all, they’re out to make money, not deals.

To learn more information about loan modification services contact Janian and Associates for a free consultation.

How Can Obama’s Home Loan Modification Program Help You

The loan modification program announced by the Obama Administration has come as a huge source of relief for the mortgage and housing industries, who were struggling to stay afloat. It will also prevent the at-risk debtors from home foreclosure.

With the value of home decreasing on a daily basis, the housing sector has taken a huge hit by the current economic recession. This fact has caused home foreclosure to be a bad option for lenders even if the borrowers are ready to mortgage the home. Luckily, the loan modification program will help give a better option to borrower and lenders who are facing home ofrclosure.

The program has the homeowner in mind primarily when considering who it should help, giving them hope. This loan modification program has a budget of approximately $75 million to work with. While the risk is substantial, it may be the only solution for today’s economic troubles, especially in the housing industry.

As opposed to prior loan modification programs, this one is implementing a few new features that homeowners should find advantageous. Following a philosophy of loan modification as a preferred alternative to foreclosure, the plan calls for steps to make sure homeowners keep their homes.

Lenders will also get benefits if they participate in this loan modification program. They will be given cash incentives for each loan modification the do. The loan modification program will provide lenders $1000 for every modification, with an addition $1000 paid for each year the loans stay out of default.

The most important benefit of this home loan modification program on the part of homeowners is that, they will have to pay monthly installments at a reduced interest rate. This means, they will not have to pay more than 31% of their total monthly income.

This loan modification program will also take $1000 off the borrower’s loan principle for each year they maintain repayment without default for up to five years. In other words, in order to get this benefit, they must make all monthly payments on time.

If your home has decreased in value more than 15%, you could refinance your home loan at a 4.5% fixed interest rate, which can help you increase the value of your home. For people who bought homes at the height of the housing market, and are now facing troubles now that the economy is bad, this loan modification program can provide a lot of help.

Thus, this loan modification program not only allows the homeowners to pay their monthly installments at a reduced interest rate, but also gives them an extended time to repay their debts. This way, Obama’s loan modification program will surely serve as a boon for struggling homeowners and the lenders.

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Loan Modification Is Very Helpful To Some Homeowners

Due to the very fact that over 3 million US families are currently struggling with their monthly mortgage and faced with home foreclosure, there has been a huge increase in the tally of loan mod applications filled out throughout the past year. The vast majority of all property owners agree that obtaining a loan mod is normally their most appropriate road when it comes to saving their mortgages.

As a result, a lot of them have proceeded forward and completed their applications but have ended up facing a handful of problems and issues.One of the largest headaches run into by borrowers is mortgage modification cons. Due to the fact that there are hundreds of thousands of borrowers who are looking to get their mortgage loans worked out, some individuals or commercial borrowers have taken note of the profitable money making opportunity in providing mortgage modification services.

Hence, these companies have tried to prey on the sensitive position the families are trapped in and have made gross profits on their problem. Instead of offering a real answer and a method for getting mortgages modified, these loan mod hustlers expect a large contracting fee from the homeowner without certainty of whether the mortgage loan is worked out or not. After the borrower, who has no real choice but to agree to the pre-modification charge enrolls, the modification company regularly either just takes the money or comes up with some fraudulent excuse after a few days that the loan mod application was not accepted and takes all the money for their early services.

Borrowers who are aware of these fake operations that require upfront charges without actually modifying the loan have recently started falling for a new scam. Numerous businesses have began to claim they will not be demanding any fee unless the loan modification applications are confirmed. But instead of getting the applications approved by the lender, these companies tell that their own legal advisors and loss mitigation specialists have accepted their requests and they are required to pay the fees before the requests is forwarded to the bank.

In the end, whether the businesses personal lawyers or consultants accept an application won’t change the borrower’s dilemma. Only the lending institution can agree to or deny the applications and only after they accept a mortgage loan mod will the borrower’s loan be renegotiated. Due to the number of scams, borrowers are taught to make sure that they won’t pay any kind of upfront fees unless their mortgage lender guarantees their mortgage loan mod requests.

morgage loan rate modification offers a way out of you and your families financial struggles.