How Long Will It Take To Complete My Loan Modification...

I hear this question all the time. When an individual contacts me about loan modification, I always get this question posed to me. Understandably so, when homeowners are going through the loan modification process, they are antsy and stressed out from financial challenges. Sometimes they are even a little hostile.

Not only do homeowners wonder "how long will it be before I hear something?", but they often wonder "what should I do while I am waiting?"

Loan modification can take anywhere from 15-90 days. We have seen certain lenders get right at it and complete the process in as little as 15 days, while others take much longer...up to 90 days. It depends on the level of efficiency of the lender as well as how many modification applications they are processing. There is no exact science to the process. It also depends on each client's situation. The more complex and involved the situation is, the longer it will take to complete. borrowers with a lot of collateral issues will take longer to process.

This is an even more important reason to retain the services of a loan modification professional to handle your case. The professional will assemble and format the application and supporting documentation in a format that the lender wants. This will decrease the time factor and increase the chances that your loan will come back with a positive modification proposal. Also, when submitting the proposal to the lender, we always ask for a lot, but do it in a manner that will make sense to the lender, thus increasing the chances that a positive loan modification proposal will be returned from the lender. The professional can find out from the lender the "best" and "worst" case scenario for a time factor, so the client will have some idea as to when they might be hearing back from the lender.

It is always a good idea to get a specific name, a number, and an extension of the lender's agent for future reference. Get their employee ID if possible, especially if specific information was divulged or promises made. If you hire a loan modification professional, be advised...the lender will still call you. When this happens, let the lender know that you have a loan modification professional representing you and that they should direct all calls and correspondence to them. Give the lender the contact information of the professional representing you.

If you are handling the case yourself, be sure to log all phone calls...date, time, and the person or persons you spoke with along with a detailed but concise account of what was discussed. Keep track of important dates. If you do not hear something back on the date provided, call the next day to find out what is going on. Lenders rarely call you back with updates. If you hire a professional to handle your case, they will call the lender and then relay the updates to you. At Credit Capital Solutions, we provide a live link that the customer, the consultant and corporate all have access to, that provides "real time" updates.

Explore other options as well. Have a Plan B & C in mind as well, for a back-up. If you are denied, short sale or foreclosure are options that you are going to explore, so doing some homework ahead of time will alleviate you of stress and time.
Consult a real estate professional for options that make sense if loan modification does not work for your situation.

Do not be surprised if you continue to get delinquent notices or late payment phone calls. Lenders rarely put a stop on the foreclosure process until a workout solution is fully in place. You should ask your lender if your attempts to negotiate a solution will stop or at least postpone other collection actions. If they do not, you should find out what that means for you. Keep track of your time lines with respect to the foreclosure process. Push to have all foreclosure proceedings stopped by the lender until a final decision is complete on the modification process.

When the final decision is in someone else's hands, 15-90 days can seem like an eternity. By remaining proactive, informed, and exploring other options, you not only improve your chances of a positive outcome, but your stress level will remain lower. By doing this you "Empower Yourself".