Posted by Donna McDaniel on 6/12/12 8:15am
Msg #423230

Loan Modifications

Why is it so difficult to schedule loan mod signings with borrowers? I don't see the downside to it. If my lender wanted to reduce my rate to 2.5%, I would be all over it!!

I'll admit, I have no idea of the process involved in obtaining a modification, but I just don't get why I have to practically chase these people down. I have even had some that hire attorneys and expect me to deal with them.

Am I missing something? I'm sure there is someone out there who can enlighten me....

Reply by Donna McDaniel on 6/12/12 9:38am
Msg #423232

To clarify..

I am referring to the final modification that sets the rate and payments for the term of the loan, not initial applications.

Reply by Larry/IL on 6/12/12 9:47am
Msg #423233

I have had similar experiences with scheduling Loan MODs. In almost every case the borrowers have had to wait 1 to 2 years to get the process to the point of signing. I have heard of cases where the department that holds the loan doesn't communicate with the modification department and continues to apply pressure and harass the borrowers. I have heard where borrowers have to had to go through their state representative to get he process done. Borrowers have had to supply the exact same paperwork sometimes 3 and 4 times.

I think some of the borrowers just don't believe the mod is really going to happen and not too excited about it after all they have been through.

Then there are those that just do not take care of their affairs and not very respectful of other people. I can't tell you how many times I have not even had a borrower to call me back to confirm after calling them 2-3 times.

Funny how quick they call when you are running about five minutes behind, wondering if your even coming. My standard response is, Oh you want to do the refinance, because I never heard back from you? I am almost always just a minute or two away. Kind of nice to have them a bit embarrassed and sheepish that that didn't call you back after 3 attempts. At that point it's very easy to keep control of the signing and get it done as efficiently as possible.

Reply by MW/VA on 6/12/12 9:49am
Msg #423234

That really is strange. It's been very difficult to get

loan mods, so my experience is that people are very anxious to get them signed, sealed & delivered. Maybe it's a trust issue, and they're worn down by the process. Who knows? It is hard to believe, but people are people. LOL :-)

Reply by Doris_CO on 6/12/12 10:26am
Msg #423236

Some modifications are the result of arrangements between the borrower and the collection department. It's a last ditch effort before foreclosure. The borrower might be weighing the decision to sign the modification and keep the loan or let the house go into foreclosure and move on in life.

Reply by Donna McDaniel on 6/12/12 10:54am
Msg #423238

I do mostly Wells Fargo loan mods. From what I understand, they go through a trial period and if they are able to make the payments, the lender draws up the final modification and sends a copy to the borrowers for review.

I receive the paperwork and then schedule the signing. These signings pay fairly and I try to schedule them for a time I will be in the area.

Reply by Donna McDaniel on 6/12/12 12:22pm
Msg #423248

Thanks for the comments, I now understand that there is a lot more to it than I previous thought.

I also have received a PM from someone who has been through the initail phases explaining the "demeaning" process the borrowers must go through and how many just give up.

I will be more patient because I believe this is a beneficial program when it does work out.

Reply by MW/VA on 6/12/12 1:44pm
Msg #423271

I know you've been around for a while, Donna. You may

not know the scoop on loan mods. We were ready a while back for the volume of these we expected to come down the pike. As it turned out, apparently the banks decided it was too much PIA for them to bother with, so they made the process almost impossible.
I've heard stories from people who applied, waited, were told the paperwork was lost, submitted it again, etc.--delays & excuses over & over. One couple was at the process for over 2 years and had almost given up many times.
I'm not saying that's true of WF, who apparently is more responsive to lending needs these days than a lot of other cos. BTW, we never know what's going on behind the scenes in the financial world in these difficult times. I was thinking about Taylor Bean Whitaker the other day, and now GMAC. The dominoes are continuing to fall.

Reply by Deborah Breedlove on 6/12/12 5:10pm
Msg #423318

Re: I know you've been around for a while, Donna. You may

I've done several where the BO said they were contacted by the lender, who offered to reduce interest rate at no cost to BO because they wanted to keep their business. BO was current on mortgage payments and had good credit. Lender probably thought BO could easily refi and get a lower rate elsewhere, so they beat them to it. BO was very happy and the process was fast and easy.

Reply by jba/fl on 6/12/12 5:34pm
Msg #423323

Is it possible there is a method to their madness? That a

refi is good sense on their part as they don't know where the note is on the old one? Self protective measure?

A recurring thought of mine.

Reply by Lee/AR on 6/12/12 7:24pm
Msg #423336

Mine, also. There is a reason, for sure, for sure. n/m