How To Negotiate A Successful Mortgage Solution With Your Lender And Remain In Your Home



Tip #1 Make contact with the Lender

Once you fall behind on the mortgage payment, you will hear from your lender. The lender will attempt to find the cause of the delinquency and determine if you will be able to resume making regular payments.

Tip #2 Careful Listening is most important

By listening you will know what the lender expects from you. Provide them with the documents and information needed for their assessment. Do not send what is not requested. By listening you may find that the lender is determined to avoid foreclosure and that they are willing to offer attractive terms in the Forbearance of Loan Modification Agreement. Do not offer solutions until you know what the lender is offering.

Tip #3 Maintain a positive attitude

While you navigate through the process of providing documents and information to the lender, maintain a positive attitude. At the end of the process, the lender loss mitigation officer is going to have to recommend the approval of your application for a Forbearance or Loan Modification Agreement. You want that person to believe in your file and support you in your efforts.

Tip #4 Maintain a conversation log

Always taking notes of all conversations you have with the lender. Note the date and time all conversations as well as the name of the person you spoke with. Keep detailed notes. The notes should include as many specific points as possible. Good notes from previous conversations could give you the needed leverage to get the lender to honor an offer that was made in the past.

Tip #5 Stay in your home

Do not abandon the property. You may not qualify for assistance if you vacate. Speak with the lender and determine the best options they might have to resolve the situation. If the lender believes you do not care about the property they may assume that you have no intention of paying them back.

Tip #6 Be courteous!

The best means to getting your file move to the top of the pile is to remain courteous. Listen to what the lender representative has to say throughout the process. Remember the lender representative is handling a very heavy work load. The lender representatives that handle delinquencies and collections are not used to being treated nicely. You will find that by remaining courteous, your file will move along much faster.

Tip #7 Remain focused and do not become frustrated

When faced with the stress and the anxiety that a mortgage delinquency creates, it is easy to become frustrated. Until you get an approval on your Loan Modification or Forbearance Agreement, the threat of foreclosure looms overhead. Getting an Agreement approved will likely require patience on your part. The lender is most likely processing many files simultaneously. A frustrated borrower loses patience and makes a decision at an emotional moment that undermines the entire file.

Tip #8 Get a direct phone number to the lenders’ representative

It is frustrating to recount your situation each time you contact the lender because you start with a new representative. You can avoid this frustration by getting a direct phone number for a representative you have spoken to and can continue to work with.

Tip #9 Be prepared

Do not try to rely on your memory. Do not speak to you lenders representatives without having all of your facts assembled and your strategy planned. Have your written notes with you and have your credit history and records on hand.

Tip #10 Review the final agreement carefully

At the time you are approved for a Forbearance Agreement of Loan Modification, the lender will prepare the agreements. Review them carefully and pay attention to the following items which are part of the agreement:

1. Interest Rate and payment calculation

2. Provisions for the lender to recover delinquent interest and accrued fees. Review the method of repayment and the calculation of the amount to be recovered.

3. Penalties that may take effect if the loan is not kept current. In some cases the lender will attempt to keep their foreclosure option open, thereby allowing for an accelerated foreclosure if the loan becomes delinquent again.

Tip #11 Obtain legal advice

Before signing the Forbearance of Loan Modification Agreement it is a good idea to have it reviewed by an attorney. Keep in mind that your agreement is a document modifying the terms of your loan, it is also an attempt to collect a debt. The Agreement may have certain provisions which waive your legal rights to which you are entitled. Share with the attorney all of your notes taken throughout the process.

Tip #12 Know the terminology

Make an effort to learn and understand the common terms relating to mortgages.

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