Loan Modification Self-Help Guide 3
Expectations
■ While you can obtain your own loan modification,
it is usually time-consuming and tedious. You must be persistent
with your mortgage lender. When possible, communication
with your lender should be in writing. If you talk on the phone to
a representative of your lender, be sure to document the name of
the person you spoke with, the date and time of your conversation,
the phone number, and all information you received.
■ A successful loan modification could take several months,
so be sure to return all requested information and
documentation to your mortgage lender in a timely manner.
Maintain a file of all documents received and all delivery receipts.
■ Your lender may request that you have your home appraised by
a licensed real estate appraiser or evaluated by a licensed real
estate broker.
■ Once you receive the final loan modification paperwork,
you can also expect that the initial loan modification will be
for a trial period of usually a few months. After you have made
all scheduled payments on time, your trial period will end
and your loan modification will become permanent. If you were
considering selling your home, you would have to wait for your
loan modification to become permanent. Have a real estate
attorney or real estate broker review the terms of your loan
modification prior to listing your home for sale.
II. LAWS SURROUNDING LOAN MODIFICATIONS
■ In October 2009, Governor Arnold Schwarzenegger signed
Senate Bill 94 (Calderon) which prohibits any person, including
real estate agents, mortgage brokers, and lawyers, from
demanding, charging, or collecting an advance fee for loan
modification services prior to the completion of those services.
If you are approached by any person requiring upfront fees for
loan modification services, do not pay them.