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If you feel that you are having problems making your mortgage payments, the first thing you must do is speak to your lender so that you can work out some sort of agreement. Studies show that at least fifty percent of borrowers who have defaulted on their loan or missed a payment have never contacted their Lender.
Banks are not in the business of property management. They do not want to take back your property. They are more inclined to work out an agreement with you so that they can receive mortgage payments and you can stay in your home rather than go through the foreclosure process which can be costly and expensive.
Although it seems overwhelming you must make that first phone call to your mortgage company so you can find out what your options are and what you should do next. But what department do you speak to? Who do you ask for? The first thing is to understand how Banks and servicing companies work and what department you need to concentrate your efforts on.
Firstly there is the customer service department who usually answers any general enquires and are able to help you with your account if your account is current.
Then there is the collection department. This is usually the first barrier that you come across when you call. If you are behind in your payments, this department has one major purpose and that is trying to collect a debt. They are trying to get you to pay any money that you might owe the lender and are not in the business of negotiation.
The next level which is the most important for you if you are trying to get your loan modified is the loss mitigation department. This can also be called loss prevention, loan modification, Work out department or loan resolution or foreclosure prevention department. In the end they all mean the same thing and that is helping you to work out some agreement to pay your loan.
It is very common for these departments not to speak with you initially. Many banks prefer for you to speak to collections first and do not give out any direct numbers to the modification departments. But you must be persistent. Some banks will even tell you that they don’t have a mitigation department. They all do.
Loss mitigation specialists are usually loan officers who will look at loans on a case by case basis to see if they qualify for a loan modification, remember that not all do.
You can be on the phone a very long time and may be transferred many times, the best thing once you have been transferred to the right department is to get to speak to some one who can be the contact for you on your case so that you are always speaking to the same person, make sure you have their direct extension as well as their fax number. Each time you speak with some one make sure that you write down their full name or id number as well as their department and the time that you spoke to them. So long as you are persistent and reiterate your intention to each individual to make sure that you are speaking to the right person you should achieve your goal. |
