Many borrowers asking: “how do I apply for a home loan modification?” have no doubt heard about their options to avoid foreclosure. Words like “short sale”, “deed in lieu”, and “loan modification” have become household terms for struggling borrowers across the country. In most cases, a loan modification will be the borrower’s first option since it is the only option that allows monthly mortgage payments to be lowered while allowing the borrower to maintain ownership of their property.
How Do I Apply for a Home Loan Modification? Common Problems
Applying for a loan modification should be an easy process but has been made very difficult by backlogged lending institutions staffed by less than knowledgeable employees incapable of maintaining effective filing systems or communicating between the various departments of the lender. To better understand how these things affect a person’s loan modification application, one must examine each fault individually:
Backlogged Lending Institutions: The fall of the housing market caused many lenders to lose a lot of money. When trimming the fat became necessary, thousands of lending industry employees found themselves out of work. As lenders began to foreclose, loan modification applications began to roll in by the thousands. With fewer employees and the need to address each application individually, the work started to back up, and in many cases, continues to be backed up to this day as more and more homeowners request help.
Less Than Knowledgeable Employees: Normally, employees with any authority or seniority in a company don’t answer phones. The customer service agents that field a majority of questions regarding loan modifications often deliver bad information or information that contradicts what other customer service agents hand out. Also, the individuals answering the phones normally have little to no knowledge regarding the file of a specific borrower.
Lack of Effective Filing Systems: One of the chief complaints made by borrowers facing foreclosure attempting a loan modification is that their lenders have lost portions of or entire loan modification applications. The simple misplacement of even one document by a lender can have dire consequences on the borrower’s request for assistance.
Those are a few of the problems homeowners face when asking: “How do I apply for a home loan modification?”
Hiring a Loan Modification Attorney
While it shouldn’t be necessary to have to hire an experienced loan modification attorney for a process that should be much simpler than the lending industry has made it, the sad fact of the matter is that it is necessary, and if a borrower expects any chance of success in having their loan modified, they will invest in attorney services to overcome the various problems listed above. While an attorney may not be able to prevent many of the above listed problems, the attorney will be able to give you a fair opportunity to get the loan modification.
McFarlin LLP attorneys handle all aspects of loan modification for borrowers in San Diego, Riverside, Sacramento and throughout California. Our attorneys are available to provide you with honest reliable advice at our Irvine office or over the phone. With a matter as important as loan modification and foreclosure, it is a very good idea to consider hiring a qualified loan modification attorney to represent you and protect your interests. Call us today at (888) 728-0044.