A loan modification can take anywhere from 30 days to 90 days to complete. It really depends on several different factors including but not limited to the following:

• Your current lender or servicer
• How delinquent you are
• How thorough you are when submitting the modification request
• The manor in which you communicate with your lender/servicer

Each one of these factors deserves some further dissection.

Your current lender/servicer may slow down the loan modification process. Keep in mind; most lender/servicers are overwhelmed with loan modification requests. In fact, they have resorted to sifting and sorting each request so they can help those that appear to need help the most which brings us to our next factor, how delinquent you are.

Believe it or not, your lender is not proactive, in fact, they are very reactive. You would think that a lender would want to prevent a homeowner from becoming delinquent on their mortgage payment by working out a re payment plan. Unfortunately, it is exactly the opposite. Most lender/servicers choose to work with homeowners who are behind with their mortgage payments over those who are current. The reason being, if you can’t afford your mortgage payment, how can you consistently make it on time?

Another important factor to keep in mind when requesting a loan modification is the completion of the paperwork involved. Lenders like to receive all the necessary paperwork and documentation at one time. They don’t like to receive 10 different faxes or letters because it slows things down. They also like to receive a specific set of documents along with some other worksheets. If these worksheets are incomplete and there is missing documentation, your request for a loan modification gets pushed back to the end of a very long line which really slows things down.

The last factor is how you communicate with your lender. Keep in mind, when you contact your lender you will be speaking with the collection department or customer service and they aren’t very helpful. These representatives aren’t paid very much and really don’t like their job. If you are mean, impatient, or belligerent, you won’t get very far. It’s best to tackle these phone calls with an open mind and a positive mental attitude. Remember, the person you talk to is not the one who put you in this mess but they are the one that can help you out of it.

If you would like to speed up the process, than you should do one of two things. You can try and request a loan modification yourself in which I would suggest using a DIY Loan Modification Package similar to what Michigan Mortgage Modification offers. This DIY package will give you everything you need to complete a loan modification on your own.

Or, you can choose a Loan Modification Service and a modification specialist will do it all for you. This will get you your fastest results and a better chance a completing a successful loan modification.

Author: Trevor Sines

Article Source: http://EzineArticles.com/?expert=Trevor_Sines

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Many loan modification companies are small, entrepreneurial firms that provide a vital service needed by banks, yet which they have failed to develop adequately in-house. The most trustworthy loan modification companies offer attorney based loan modification and a money back guarantee should they not be able to successfully lower your monthly mortgage payment, minimize late fees or at least create a situation whereby you can afford to stay in your home should you choose to do so.

Loan modification companies assess borrowers’ ability to pay through analysis of wage statements, investment accounts, bank accounts and tax returns, among other data. They then make proposals to the lending institutions for restructuring of mortgage terms in a fashion that will enhance the likelihood of repayment.

Loan modification companies can be engaged by borrowers to negotiate on their behalf. They also can be hired by lenders to help salvage troubled loans. A given loan modification company may rely primarily on one or the other sources of clients, or both.

Lenders have an interest in offering concessions to troubled borrowers because the costs of foreclosure are high. Among other things, borrowers do not want to take possession of illiquid real estate, especially in falling markets.
Loan modification companies’ fees may be billed either to the borrower or to the lender. If the company is engaged by the borrower, the borrower may be assessed the fee, sometimes up front and without guarantees of results. In other cases, even if the borrower engages the company’s services, the lender may be charged the fee, in the case of a successful renegotiation.

A loan modification agreement represents a major restructuring of a loan’s terms and conditions, in a case where the borrower faces long-term problems in being able to repay the original loan. A loan forbearance agreement, by contrast, grants a temporary suspension or modification of payments on a loan, to help the borrower weather temporary financial difficulties.

As long as the mortgage market remains distressed, with significant numbers of borrowers unable to meet their obligations, loan modification companies will have a steady stream of business. On the other hand, lenders who currently outsource this work to independent loan modification companies will have incentives to bring these activities in-house if the crisis proves long-lived. In either case, employment opportunities in the field will be directly proportional to the prevalence of distressed loans.

The employees of loan modification companies who engage in restructuring and renegotiating loans have a similar skill set to that of loan officers at banks and other lending institutions. Accordingly, work at loan modification companies is a viable alternative for present or former loan officers, including those who recently have been laid off.

By: Peter Collins

Article Directory: http://www.articledashboard.com

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