Dealing with Lender Delays in a Loan Modification - dummies

Dealing with Lender Delays in a Loan Modification

By Ralph R. Roberts, Lois Maljak, Joseph Kraynak

While some lenders expedite the loan modification process, others lenders don’t (whether intentionally or unintentionally). They delay the loan modification process until the option falls through the cracks and the homeowners lose their home.

As a consumer, you have very little recourse other than hiring an attorney to add some pressure to your lender. If you’re flying solo, the best you can do is keep in touch with the lender and try to keep the process moving forward.

Here are some recommendations on how to keep the loan modification process moving:

  • Track dates on which you were told you would hear something. If the date passes and you receive no word from the lender, call to find out what’s going on.

  • Submit a written request to have your case handled by one representative from start to finish. This is helpful if your lender has a practice of rotating its customer service reps.

  • If the representative assigned to your case is unresponsive, ask to speak with the person’s supervisor. If service doesn’t improve, speak with the supervisor again and request that your case be transferred to a different representative.

  • Make sure you’re dealing with the right department. The general customer service representative is probably not the person you need to speak with to get answers. You need to talk to a loss mitigation expert. Ask to speak with this person early on in the conversation or you’ll find yourself having to repeat everything when you get transferred.

  • If you believe that your lender is delaying the process, contact your state attorney general and other consumer advocacy agencies.

Don’t be surprised if you continue to receive delinquency notices or late-payment phone calls during the entire loan modification process. Lenders rarely stop the foreclosure process until a workout solution is fully signed and in place. Ask your lender if your attempts to negotiate a solution will stop or at least postpone other collection actions.