When President Barack Obama's $75 billion mortgage relief plan launched last month, millions of Americans realized they qualify for a loan modification. As more and more people now apply for loan modifications, many are not hearing back from their lender for several weeks, and are receiving late payment bills in the mean time. How long does the process really take, and what can you do during the waiting period?
First, know that most loan modification take between 30 to 90 days. However, the length of the process will depend on your lender and your completion of the necessary paperwork. If you have a lot of issues relating to your mortgage, it is possible that your timeframe will be much longer.
Another step to consider is bringing in a professional to help you present your loan modification paperwork. Someone with experience will know the ins-and-outs of working with your lender and can help you save time.
Before you actually send in your application, make sure to talk with your lender directly and ask them when to expect communication about your case. Make sure to get contact information about who to get in touch with if you don't hear back by that date, and keep records of every conversation you have.
If you're currently waiting to hear back from your lender, there are things you can do in the meantime. You should start exploring other options so you're prepared if your lender denies your loan modification request. Consider putting your house on the market, talking to your lender about refinancing, or speaking with a bankruptcy attorney.
Finally, find out if your payments can be put on hold until a solution is negotiated with your lender. If your application is under review, but you're still receiving notices or calls about payment, make sure to request a hold as you wait for an answer.
- Jill Kipnis, Move Trends Editor Email: Jill Kipnis@Move.com
First, know that most loan modification take between 30 to 90 days. However, the length of the process will depend on your lender and your completion of the necessary paperwork. If you have a lot of issues relating to your mortgage, it is possible that your timeframe will be much longer.
Another step to consider is bringing in a professional to help you present your loan modification paperwork. Someone with experience will know the ins-and-outs of working with your lender and can help you save time.
Before you actually send in your application, make sure to talk with your lender directly and ask them when to expect communication about your case. Make sure to get contact information about who to get in touch with if you don't hear back by that date, and keep records of every conversation you have.
If you're currently waiting to hear back from your lender, there are things you can do in the meantime. You should start exploring other options so you're prepared if your lender denies your loan modification request. Consider putting your house on the market, talking to your lender about refinancing, or speaking with a bankruptcy attorney.
Finally, find out if your payments can be put on hold until a solution is negotiated with your lender. If your application is under review, but you're still receiving notices or calls about payment, make sure to request a hold as you wait for an answer.
- Jill Kipnis, Move Trends Editor Email: Jill Kipnis@Move.com
About the Author
- Jill Kipnis, Move Trends Editor Email: Jill Kipnis@Move.com
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