BE PREPARED OR WHAT TO DO WHEN YOU ACTUALLY FIND A HUMAN BEING ON THE PHONE WHO SAYS THEY WANT TO HELP YOU

Since the “mortgage crisis” and even before, the principal experience of homeowners or those who work, like my firm, with homeowners, in dealing with the mortgage companies, have been made to suffer the enormous frustration of repeated telephone calls, being placed on hold, filling out and submitting forms, and then following up, only to be told that the Bank cannot find the forms, and having to start all over again. That has really been the hallmark of the process, and the solution and key to success has been persistence. However, it is imperative that you be prepared for that cathartic moment when you actually reach a human being, at the precise confluence of the great time and space continuum, when need intersects with contact with a person who has the desire and authority to help. It does happen, really! Maybe not to you, but somebody eventually wins the lottery, right?

What does be prepared mean? In addition to having your loan information and the detailed prior notes of all communications and efforts in front of you, you need to be able to provide accurate information regarding your financial circumstances; income and expenses and, of course, have copies of everything that you have previously submitted in the loss mitigation process. It is appropriate here for me to mention a fact that must be kept in mind; it is a crime to lie to a federally insured lending institution in order to influence them in making a decision regarding a loan. Surprisingly, some people have actually gone to jail for this. With this in mind, it is important to assemble financial information that shows the hardship which caused your present difficulties, but you still have to show sufficient income to meet “reasonable” shelter expenses, including the modified mortgage that you are seeking, so that it now makes sense for the bank to turn frowns upside down.

A “reasonable mortgage payment” is the amount when combined with other “shelter expenses” equals 31% of the family’s gross income. “Shelter expense” equals mortgage payment, principal and interest, real estate taxes, hazard (windstorm, flood, fire, etc.) insurance, and condo and/or homeowner’s association fees. Most mortgage companies have a website where you can obtain the necessary forms so that you can do all of this in advance before you play the telephone roulette game with your lender. I strongly recommend this approach.