Loan Modification is About Being More Determined Than the Bank
If you’ve ever tried to modify a Loan through a Bank, then you already know one thing: Banks can often make the process so difficult it doesn’t even seem worth the effort. This is what separates the accepted applicant from the denied applicant. In 2010, every creditor / lender / Bank has figured out one thing… some people won’t follow through with their loan modifications if you make the process difficult. Borrowers will falter, hesitate, miss a deadline and POOF! their opportunity to modify their existing loans has passed. Don’t be that borrower. Here are a few tips from the trenches of the Battle for Loan Mods being fought daily:
1) Never give up. Be relentless. The lender is not going to push your case through the system – that is your job. So eat healthy meals, exercise, and lift weights because getting a loan modification is like participating in an athletic event. It is tiring, requires personal strength, and certainly demands some serious stamina.
2) Be well-informed. Read all of your loan documents. No matter how boring they may seem, being a smart debtor makes you a valuable debtor. If you have two mortgages, keep your first mortgage and your second mortgage separate in your mind. Also, check out the website for your lender. Visit the Bank’s websites, learn about their departments and practices.
3) Be well-prepared. Always keep your loan information spread out, with the most important pages on top, when you’re ready to call the lender. Have your notes from previous phone calls ready to answer questions.
4) Take notes. Keep track of every name, extension, and job title of every person you speak with during a phone call to your Bank. Remember, employees at the Bank, like anywhere else, can move, be reassigned, forget, or misplace information. That’s where you step in and lead them in the right direction.
5) Keep a calendar. As you learn about important deadlines, write them down on a calendar (or, if you are tech saavy, you can use Exchange or an open source alternative) and keep a reminder note about a week out. When your reminder hits, call the bank and make sure you are in compliance for that step. Ask if there is anything else you can do and be prepared to hustle any documents they need out the door that day.
6) Get your documents in early every time! Always send in your documents as soon as you can and then call and verify that they were received by the Bank. Never assume that they received your documents just because you faxed them in. Lenders rarely complain if you send too many copies, so back up your emails with letters and your faxes with certified mail!
7) Finally, never give up! You are a rock, strong and unbending in your determination to modify your loan. You are an arrow, aimed at your goal of a loan modification and focused on helping your creditor find reasons to approve it!
The loan modification process is not a sprint, it is a marathon. You must be prepared, informed, and studiously devoted to your own cause. If you cannot find the time to devote to this process, hire someone who can. If there are issues or questions you can’t answer, ask an expert. Whatever happens, don’t give up! For more information on loan modifications, follow this link to a fantastic collection of past blog entries devoted to loan modifications.
For even more information, look at the government's website 
This is significant because most (if not all) loan modifications up to now consisted of banks largely shifting interest rates and extending payment terms. Thus, the actual principal of the loan was never really effected, merely the interest. As a result, the underlying problem which plagued a lot of homeowners was never truly addressed (that they simply had purchased homes which were beyond their budget). 
While that has not changed, our office has seen some interesting movement by banks and loan servicers regarding investment properties. Under many circumstances, even the investor may gain some relief through loan modification. 
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