Negotiating Your Loan Modification

 

Once you have verified with your lender the information that they require, gathered the necessary documents, and submitted your information, the negotiation phase begins.

Patience is a virtue when it comes to negotiating with lenders. It can take from two days to several months to work out an agreement. Lenders today are swamped with loan modification requests.

Although who your lender is makes a great deal of difference, if you are dealing with a large organization be prepared to submit your package more than once, wait on hold for long periods of time, and wait even longer for your calls to be returned.

The important thing to remember is not to let anxiousness overcome your ability to negotiate favorably. If you cannot do this hiring a professional may be your best bet.

Keep An Accurate Log Of All Materials And Contacts

 

The primary rule in negotiating a loan modification to to keep a log of all of your conversations. Write down who you spoke to and when you spoke to them. Include a brief summary of the conversation immediately afterwards and any actions that need to be taken by either you or the lender. Also jot down a follow up date to make sure that progress is being made.

In addition to conversation logs keep copies of all correspondence sent and received during your negotiations process. Large corporate organizations are notorious for losing information that you send them. This can increase the time for your loan modification to be completed a great deal.

You may want to put time on your side during your negotiations phase by including a waiver on payments until an agreement has been reached. If you are in foreclosure and have a sale date, make sure that your lender agrees to postpone your sale date until you have reached an agreement.

Honesty And Sincerity Are Your Greatest Allies

Loss mitigation specialists can smell a sugarcoated story a mile away. Don't get off to a bad start by sending in a request that excludes information or is anything but completely accurate. This can color your counterpart's willingness to work with you throughout your negotiations. If you tell them something make sure you can back up your claim. Developing an honest working relationship in seeking a loan modification will put the odds of a positive outcome in your favor. Lenders are willing to help you as long as it is both party's interest.