In my experience of dealing with literally hundreds of trial loan mods I have only witnessed one borrower who received a permanent loan modification. I read the paperwork including its terms with my very own eyes, touched the documents with my own hands and could hardly contain myself with the thought of suspicion. But the borrower's documents were the real thing and he was on his way to deliver them to Bank of America's loan processing unit that day.
These docs were similar to full loan docs you would sign in a closing agent and a notary. The terms were outstanding. The mortgage payment was less than half of what he was paying previously for the first year, increased by less than $100.00 a year for the next four years where it would be reamortized over the life of the loan using an interest rate not to exceed 5.3% for the remaining term.
I felt as if I was touching a winning lottery ticket - an extremely rare find. This individual is in the title insurance business and had been attempting to negotiate his loan modification for a year and a half only to be declined three times in a row. He had trial mods that failed for lack of documentation as noted by Bank of America (untrue). He had spiral binders filled with each phone call's conversation, inquiry and requests. He had file folders filled with copies of documentation sent to B of A each with a return receipts attached proving signed delivery. I was truly amazed by the tedious yet thorough documentation he had to prove every move he made.
What finally made all the difference began a work related event where he made the acquaintance of a "loan modification specialist/attorney". You know the kind.....
Well come to find out that this particular attorney was for real. He collected no fees upfront or otherwise unless he was able to perform his task to the satisfaction of the client. He had a streamline approval processor at Bank of America who would provide an answer to any feasible submission with a day or two. And within exactly five days from the time he met this attorney his loan package was delivered to his doorstep via Fedex ready for signature and processing. Lickity split. Wow!
So it goes to show you that it is all about "who you know" and nothing to do with "how hard you try" that matters. But didn't we all think that there had to be an inside track to this process afterall? With less than 5% of all loan modification attempts being approved.....come on.
Diane Wheatley, Broker