The Loan Modification Process, AKA Debacle
So, if you’ve had the pleasure, or should I say excrutiating pain, of attempting a loan modification, either with a client or for yourself… I would say “Don’t bother”. You provide your lender with documention from the time you were born until the previous 24 hours and then they still want title to your first born, and in some cases that may not be a bad deal. The Feds have put pressure on the banks to “make nice” with all the customers that are asking for Loan Mods and have even gone as far as to tell the banks to approach their borrowers and offer them loan mods before the borrower thinks about asking for one. It all sounds so good on paper but the real world twist on this is that the banks could care less about doing any loan modifications and are just going through the motions to appease the Federal Government. They (the loan modifiers) are still under-staffed and under-trained and probably over-paid but still aren’t given any authority to make decisions and move forward with resolving the homeowner’s financial woes. I know, you think I’m now talking about short-sales, but I’m still talking about loan mods. Seems to be a theme here huh? The bank’s sole business is to make money so helping the consumer figure out how to pay them less is not high on their priority list. So, If you have nothing but time then start the process and enjoy. But don’t say I didn’t warn you.
Wallace…
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