How to Convince Your Bank to Modify Your Mortgage
by Jason C from San Jose, California and by Sandra from Wyoming, Michigan
Ask Kate how to convince your bank to modify your current mortgage, even after you've lost hope: Did a loan denial dash your hopes for a mortgage modification? Don't give up! Read the four steps I outline for Jason from California and Sandra from Michigan. You'll learn how to coax your lender into giving you a more affordable payment.
How Do You Convince a Lender to Modify Your Home Loan By Jason C from San Jose, California
The U.S. Department of the Treasury forwarded my case to the Making Home Affordable Modification Program (HAMP).
But I received a denial letter from the Bank of America appeal department on December 04, 2013.
By that time, I needed to withdraw money with 10% penalty from IRA account to pay all the behind mortgage payment ($63,954.18) to keep my home for my three young children, who are all under 18. Instead, my brother-in-law loaned me $60,000.
Here is how it began. In April of 2010 I was laid off. I depleted all of my savings, EDD benefit money, and IRA account to pay for the mortgage payments. I received unemployment until I found another full time job.
I started back to work on May 01, 2012. My current income ($14.60 per hour) is much lower that what I previously made ($29.42 per hour). My family income is currently not enough to support the monthly mortgage payment.
We do not want to lose our home. Can you help me? What program can lower my monthly mortgage payment? Thank you for your help!
JasonBy Sandra from Wyoming, Michigan
I have approached my present mortgage company, on several occasions, to modify my mortgage. How can I enforce this?
Ask Kate answers: How Do You Convince a Lender to Modify Your Home Loan
Hi Jason and Sandra,
It will be easier to understand how to coax your loan servicer into modifying your mortgage if you keep in mind that lenders have been forced by the government into the HAMP program, turning them into unhappy participants.
In fact, some banks have been taken to court after sabotaging distressed homeowners' paperwork to thwart the approval process.
Read about this at HAMP Loan Modification Scheme Exposed
So if the banks are so uncooperative, how is anyone successful at getting a more affordable house payment?
Unless you happen to be with the right bank at the right time and experience some luck, you need to be determined, organized, and on top of the modification process. Yes, you must leave your lender no choice but to modify your mortgage. Here's how.
- Understand the HAMP guidelines.
- Don't go past deadlines.
- Follow up with written correspondence.
- Contact a housing counselor for back-up help.
Let's take a more in-depth look at each of these four points.
Know Your Rights by Understanding HAMP Guidelines
Knowledge is the best defense against an unwilling lender. So before you apply for a HAMP modification, read up on the program guidelines.
This will give you the upper hand during your discussions with the bank, maybe you'll even intimidate them a little with your understanding of HAMP!
Read the HAMP 2 Mortgage Modification News
regarding updated guidelines, giving denied homeowners a second chance at applying for modification approval.
Eliminate Excuses to Deny Your Application
Don't give the loan servicer an easy out. The best way to do this is to meet deadlines.
I understand it's irritating to be told they never received your faxed paystub. But if this happens (and chances are, it will), you're better off to take a deep breath and fax it again. And in some cases, a third time. Give the lender no excuse to say you quit cooperating.
Document Every Conversation
Become your own negotiator by taking control of the loan process. One simple way is to let the representative know that you are documenting every conversation.
Before hanging up, tell them you want to verify that you understand their instructions by repeating back what they told you. Ask for their name, phone number, and an email address. Then email them a written record of each conversation.
It's tempting to think that a commercial service could negotiate a better deal for you. Beware of these offers! Go to Who Modifies My Mortgage - Loan Modification Help
to learn more.
Form an Alliance with Making Home Affordable Counselors
It used to be that contacting a bank department manager was helpful after a borrower experienced poor customer service. But based on the letters I receive from distressed homeowners, this technique isn't as useful as it once was.
So take advantage of the Making Home Affordable housing experts. Not only is their counseling free, they offer assistance when your HAMP process is going sideways.
Read more about the 24/7 service available in 160 languages at Free Making Home Affordable Housing Counselors Offer Extra Help
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