With so many home loan modifications being processed by lenders, there are many instances when the paperwork gets lost, the process goes on for months, or permanent modifications fail to get approved. How can the homeowner protect himself? The best way is to keep track of all communications and retain copies of all documents sent.
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The federal government has come down hard on lenders stating that they are not doing everything possible to help struggling homeowners. As of last November, a reported 680,000 borrowers had been granted temporary loan modifications but only 31,000 received permanent help. In response, financial institutions are claiming that customers are not returning the requested paperwork, not including the required forms, or failing to do so within the allotted time.

What it comes down to is a case of one person’s word against another’s, or in this instance, the institution’s claim against the homeowner’s.

A borrower’s best defense is a good offense. Write down the date, time, and details of every phone conversation you have with the lender. Before you mail the requested documentation, make a copy and indicate the day it was mailed as well as what type of service (i.e. express, priority) was used.

When you receive your loan modification kit from us, you will already have all the tools you need. You can use the easy checklist to ensure you’ve submitted everything required and even keep track of it online. Keep copies of documents in the kit so it is all located in one convenient place. Remember, too, that if you use one of the credit counselors we give you access to, you are more apt to receive the most favorable interest rate from the lender.

Protect yourself from the possibility of being declined for a mortgage loan modification by keeping documentation to prove you did your part.