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It’s not a secret that the loan modification process is hellish. Nobody likes it. However, you must cope with it and optimize your situation to win approval for your mod. After all, the stakes are high.

Effectively following-up on your application is a critical success factor. The goal is to insure that your application gets entered into the system marked “complete”, to supply frequent required updates to the file to demonstrate attentiveness, to insure that your file does not get sidetracked for rework, to respond quickly if problems arise and to counter rejections promptly.

Here are the steps to take:

One Phone Call Per Week

Do not simply call for an update. Be sure you are speaking to a person in a department “beyond” customer service. You want to be contacting the Loss Mitigation Department or some derivative of it – like the “Immanent Default Specialists” or the “Making Homes Affordable Team” or “The Way Forward counselors, or you get the picture. Get and record the full name of the party you are speaking to. Request information and provide information that requires an entry on your file. For example, don’t ask if the file seems complete. Rather, ask if a specific item, like your 4506-T form is in the file. Or, if your application is for the Making Homes Affordable Modification Program (HAMP), ask why you were not put on a trial modification. Each week invent questions that require opening, investigating and notating on your file.

Once the file is over 30 days old, start phoning to update personal budget information, paystubs, bank statements, and 4506-T Forms. In your phone calls, ask whether or not you need to send these updates. Then, they become fodder for your other weekly follow-up action – faxes.

Weekly Faxes

Do not simply fax for an update. Tie your fax to your phone calls by faxing to the attention of the person you spoke to by phone earlier that week. Link the conversation to the fax by specifically fulfilling promised information and by asking additional questions to get clarification. The additional questions for clarification provides real material for additional faxes and phone calls.

One Qualified Written Request Per Month

Qualified Written Requests are a surprisingly effective formal procedure for dialogue between borrower and lender. Find an example at www.hud.gov/offices/hsg/ramh/res/reslettr.cfm. Your lender will adhere to the requirements of QWR which are an initial response within 20 days and a formal and full response within 60 days.

Don’t abuse the QWR process. Rather, integrate it into your follow-up regimen by using it monthly to request important information – one item at a time. Multiple questions per QWR never seem to get satisfactory responses. This effort provides material for additional meaningful faxes and phone calls. And, it provides information that you need. Request the name and contact information for the investor/owner of your loan. Request verification of Fannie Mae or Freddie Mac on your loan. Request a copy of the note (you may get a big surprise with this one!). Request a record of the transactions on your loan. The follow-up efforts each week should tak no more than 20 minutes.

Rejection has become standard operating procedure

Don’t be surprised or alarmed. Actually, I consider it a good sign as it usually presages immanent approval! Simply continue your follow-up by determining the specific reason for the rejection, addressing it appropriately and escalating it if needed. I have some great tips for diplomatically (and sometimes not so) escalating in another article.

Want to find out more about actually getting loan modifications? Visit Rockwood’s site about DIY Loan Modiification at Home Loan Modification You are welcome to reprint this article – but get your own unique content version here.