Being in a tough spot with your lender such as being several payments late with your mortgage payment can be an intimidating experience if you are trying to reach them by phone to negotiate your own loan modification. However intimidating you may think it is, or will be, with the right plan and proper coaching you should be okay with your lender to negotiate a loan modification if you have done your homework, have a plan and keep your cool.
Do Your Homework Before You Call to Negotiate A Loan Modification
Part of getting a loan modification with your mortgage company is to cover your basis with why they should give you a second chance on your mortgage. Several items that often get overlooked is what your property can rent for if you were to go out and rent a place similar to yours. This gives the lender the idea of you would be willing to leave to get a lower rent payment. This information also gives the lender an idea of what they could possibly expect to make in rent if they got stuck with the property.
The second item that you should check out while you present your loan modification request to your lender is the value of your home. This is an important factor. Believe it or not, your lender is probably not going to send an appraiser to your home to find out the proper value of your home. Rather they will evaluate your home's value using an online valuation method - similar to the very popular website: Zillow.com.
Use Zillow to help you determine your home's value and then use this value when you present your loan modification request to your lender. If you want to take Zillow a bit further, you can hire a real estate appraiser to determine the value of your home - and then send your appraisal to the lender as part of your negotiation package.
Other items you will want to ensure that you have ready can be found in the following article: Items You Need To Start A Loan Modification Program
Keep Your Cool When You Negotiate Your Own Loan Modification
One of the biggest pieces of advice that anyone can give you as you pick up the phone to call your lender to begin negotiating a loan modification for your mortgage is to have a plan in mind. You need to have an idea of what you want to say, how you want the phone call to go, and what outcome do you want for yourself.
Imagine yourself hanging up the phone having gotten everything you wanted from the bank - how will you feel then? Confident - proud - happy - some other emotion? These feelings are who you need to be when you pick up the phone to call your lender - with your plan for what you want laid out in front of you.
You do not want to commit the fatal mistake of getting upset with your lender while you are trying to negotiate your loan modification. Always keep in the front of your mind that they do not have to work with you - you want them to give you a second chance. Make sure that you are polite and cordial, but confident and firm in what you want. Make sure that you stick to the same story each time you chat with them. Don't change the reason for why you are in the situation or what you are doing to get out of it. Consistency is key.
Have A Plan - Present Before and After The Loan Modification Scenario
A big component to your plan is having something you believe in. Ask for what you want and prove to them why they should give it to you. You need to give them compelling evidence for what you ask. Make sure that you ask for a mortgage payment that you can afford. You should also let them know when your new next payment will be due this way they know that you are serious and that you are demonstrating that you want to get started right away.
Make sure that you compare your current situation highlighting your mortgage payments and principle balance to the post mortgage modification scenario that you are asking for. If possible, put this in some sort of side by side three column table so it is easy for the mortgage company evaluator to read.
Good luck with negotiating your own loan modification. If you want to discuss your situation with a professional loan modification company to see if you should hire a loan modification specialist to work on your behalf, complete the following form and we'll get you in touch with someone who can help you.
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