Bank Delays on Loan Modification Applications Add to Homeowners Woes

Homeowners who have been struggling to keep up with their mortgage and are possibly looking at a foreclosure have been desperately trying to get their existing mortgages modified by their lender in the hope that it would help save their homes.

Unfortunately, a lot of homeowners who have approached the lenders themselves for a loan modification have been frustrated by the lack of response by the banks and mortgage lenders. All homeowners know time is of the essence when it comes to getting your loan modifications approved and start on the new mortgage payment plan before the house goes into foreclosure.

Homeowners say even before submitting the loan modification application, it is very difficult to get a qualified bank executive on the phone to answer their queries. If you are persistent, then you may have your answers in a few weeks but for some, the wait is literally a few months before they have all the information and have all their questions answered in order to submit the loan modification application in the required format. Even simple queries like the type of documents required while submitting your application can sometimes take days or weeks to get an answer.

Once the initial questions or doubts have been cleared, homeowners go ahead with their loan modification applications only to again be in a long waiting period not knowing what is happening with their application. Many homeowners say if they knew that the loan modification application would be rejected, then they would have started looking out for other options to save their homes. But not knowing until the last minute if their application is approved, it is impossible to have time to implement any backup plans. Many times, even if a loan modification application is strong and is likely to be approved, the time taken to complete the entire modification process and to get a new mortgage plan takes so much time that the house can be sold in a trustee sale if the homeowner does not stay on top of their application and constantly follow up.

Homeowners often complain that during the loan modification process, they find it extremely difficult to follow up with the lender regarding their application status. They are told that an employee from the lender will let them know about the application but they never do. It is always the homeowner who has to follow up and request status on their application. Already many people fear that during these tough economic conditions their jobs are no longer secure and if they have to take a lot of time off, just to meet and follow up with their mortgage lenders, they might make their situation even worse in their workplace.

Many homeowners who had applied for the loan modifications on their own feel that the time taken for the whole process is just too much to handle on their own. Hence, it is recommended to take the services of a qualified loan modification consultant to apply and follow up with the lender regarding any mortgage loan modification. The consultants would also be in a better position to negotiate the best possible mortgage payment plan with the banks and make sure it gets approved before you lose your home. Also, given the fact that there are some loan modification consultants who do not charge any fees until your application is fully approved by your lender, it makes complete sense to apply via a loan modification company and let them handle all of the follow up.