Loan Modification Frustration - The Dark Side of the Process

Contacting your mortgage company when you are having challenges with your payments can be a very scary process. If you have done this on your own you know what I mean. Speaking with someone who really does not care about your plight outside of "are you making a payment today" can be just as frightening and frustrating as law enforcement coming to your front door.

Just for kicks I contacted my mortgage company to see if I could modify my mortgage. Just a little background; I am not currently behind I wanted to find out what can be done if I was having a hardship. I contact my mortgage company and the first person I spoke with was in the loss mitigation department. After I explained my plight he proceeded to tell me that he needed to transfer me. Once transferred I asked, "What department is this" the gentleman told me, "collections". You may be thinking just like me, why was I transferred to collections? That is a question neither he nor I could answer. I then proceeded to ask what my options for a modification are. He proceeded to tell me about a refinance. I expressed to him that my house is under value and there is only one income in the house hold (for dramatic effect). Therefore a refinance was out of the question.

After a long silence he told me he would transfer me to loss prevention, which is the same department as loss mitigation... hmmm why not call it what it is? After 1 hour and 19 minutes I was connected to a human being. To make an already long story short, I was offered a forbearance agreement (only applies if your behind) which would raise my payment. Then he offered a capital "something or other" which takes the arrearage and adds it to the loan and then a possible interest rate reduction. Both of these I do not qualify for and neither one was a true modification, so I asked for a manager.

Once I got on with the manager she proceeded to tell me about the HAMP (Homeowners Affordable Modification Program) sponsored by the government. "Hmmmmmm", I said to myself, "now we're getting' somewhere". During the process of her questioning for the application I told her how much I paid in homeowner association fees. She said, "a month?" I said, "Yes, why". She said, "Are you sure, cause I have done this allover the country and I have never heard of it being that high". As I assured her that I knew what I was talking about she still was in doubt. At this point she might as well called me a liar.

Well after this phone call I felt like less than a person, especially since each person I spoke with, outside of collections, spoke with an air of arrogance and no compassion. Needless to say I did not feel empowered when I was done, nor did I feel as if I had accomplished anything. I am going to wait and see what I get in the mail in the next 5 to 7 days.



Tips when going through this process:

• Write down every bodies name you speak with - you want to journal this process

• Set aside 2-3 hours and expect to be on hold - prepare to wait grab a cup of       coffeeor a snack

• Have your information in front of you - paystubs, mortgage statement, taxes, insurance, bills

• Make sure they understand you want a modification not a refinance - you could spin your wheels here and waste time

• Be able to explain clearly why you are having a problem - your house being under value is no longer a hardship...because everyone is now.

I am very familiar with the modification process and have helped many people navigate through these murky waters. I was left frustrated and annoyed. If I did not know some of the key things to ask for I would have never gotten to the manager. However even still I feel no empowerment. My advice is seek professional assistance, ask a lot of questions and take good notes. Before you call the mortgage company, try to find out what you can about their modification process every company is different.