The loan modification process can be a tedious and time consuming process. Each lender has their own set of guidelines, policies and restrictions when they are approached by a customer to modify their loan. First, every loan has their own guidelines based on whether they are prime loans, FHA loans, VA loans or non-prime loans. Then those guidelines are further restricted based on the loan terms (i.e. 30 year fixed or ARM loans). Another complication in the loan modification process is if the loan is in foreclosure status.
Hiring a company to help with the loan modification process is a tremendous help if the following steps are followed by the customer. First, the home owner must have all of their documentation in order. This means copies of pay stubs, annual taxes, monthly bills and budget list all need to be in order to easily speed up the loan modification process. The second step is the homeowner needs to keep the home from falling more than 3 months behind in payments, thus keeping out of the foreclosure process. If the home is already in the foreclosure process it is more imperative to try to hire a loan modification company to assist, primarily because they will not give up on calling the lender over and over. This next tip to speed up the loan modification process is the most important; the documentation expires every 30 days! That means that every 30 days the homeowner needs to resubmit pay stubs, taxes if necessary and monthly bills. This part of the process is also why it is helpful to hire someone to handle this because the homeowner does not have the time to deal with the lenders; they need to be working to get the money for the loan modification or to keep the loan out of foreclosure.
Most lenders will then come back to the homeowner with a temporary offer, usually three month payments and then a loan modification if the payments were received on time. Late payments break the terms of the temporary agreement and the homeowner has to start all over again. Having a professional company keep track of all the due dates, documents and constant calling to the lender is one of the most successful ways to speed up the loan modification process.
