The Mortgage Modification Process

Vanderbilt Mortgage Modification System certainly is the right answer for many struggling homeowners. But knowing that modification is a good idea is not enough. You need to know how to get the process started and how to see it through to the end.

Two Basic Options

You have two basic processing options for pursuing a mortgage modification.

You can try to handle your modification on your own, by contacting and negotiating directly with your lender.
You can retain the services of a professional third party, such as Vanderbilt Mortgage Modification System to handle the contact and negotiation for you.

This may be a certified Housing Counselor through a non-profit agency like HUD, an attorney who specializes in an area such as real estate, mortgages, or bankruptcy/debt issues, or a reputable for-profit company specializing in mediating mortgage modifications and foreclosure prevention. Obviously attorneys and third party for-profits will charge you a fee, but in many cases it is a fee that pays for itself with the success of your new and affordable payment, and cessation of foreclosure proceedings.

First, Be Prepared

Regardless of which route you choose to follow, you will need to do some preparation on your own before you speak to anyone--whether that is a counselor, third-party, or your lender's representatives. Anyone assisting you or negotiating with you will need information in order to determine whether modification is viable. Before you make the call, first sit down and get to know the truth of your financial picture. Be prepared to answer questions about

Your financial hardship--why can't you pay?
To what extent you are able to pay--for example, a lower mortgage payment? Part of your existing payment? Your whole payment with a few months' forbearance?
How much you owe on your property
If you have equity in the home
Your future financial outlook
Your payment history, past and present

It is best for you to work out a monthly budget for your household, including all bills and debts, before you call anyone. This is information that will be needed further on in the process, and information that is essential to anyone trying to assist you. You should at least have a working knowledge of income versus expenses.

Independent Action

You do not have to seek third-party assistance. If you choose to attempt this route yourself, once you have prepared yourself with the above mentioned information you need to contact your lender. Start there by telling them what your situation is, and what you hope to achieve (your proposed solution). Answer the questions that you are asked without offering too much additional information that they might use against you. Offer an initial proposal to open negotiation.

The hardest part of handling your modification independently is actually getting to speak with a person in a position to help you and negotiate. When you first call you will be dealing with low-level customer service and bill collectors whose only goal is to get money out of you, often by whatever means possible (they may tell you to borrow it from another source or relative). Be firm and tell them this is not an option. Expect to have to go some rounds with these people until you get them to pass your call up the chain of authority. Expect to have to submit all manner of proofs and documents to them--and do so, but keep a running list of whom you have spoken to, what they said, requested and what and when (and to where) you sent the information.

The people you are really trying to reach are the loss mitigation department. Once you get there you will have to provide possibly more documents, such as letters defining your hardship, budgets, and more of the information discussed above. These are the people with the true authority to negotiate with you. From there they will begin to make proposals and negotiate terms. However, do be aware that these people always act in their best interest, not yours, so it often behooves you to consult with an attorney or housing counselor to understand what you are agreeing to.

Third Party Intervention

It is possible to handle mortgage modification on your own, but the intervention of a third party - Vanderbilt Mortgage Modification System - can often streamline the process and net better results. The biggest reason this is true is that they know the "game" and know who to talk to, and how to get through to them. They also know very well what mortgage lenders want to hear and see, and so they can assist you in putting a comprehensive and convincing package together before any contact is made.

The process of mortgage modification is not always simple, but it is a life-saver in many situations. Whether you go it alone or seek outside help, go prepared by being informed, and getting the help available to you when it is prudent to do so.