We agree, you should work with the lender first and if they do not provide affordable assistance, or they become difficult to work with, stalling you, etc. we are here for you as backup.
Until then, here are some tips and a things to consider to get better results while working with them directly.
First and foremost, the lender should be working in good faith to help you. What does good faith look like?
Tip #1: Did the lender assign you one specific agent for consistent communication or do you get a new person every time you call? Request a specific point of contact at the lender to listen to your hardship details with care and offer solutions. It can be helpful to ask for a scheduled updates to maintain accountability and evaluate the performance of your lender in getting you help.
Tip #2. When you send documents correctly the lender should record them and have them on file. Do they keep losing your documents? Are you sending the same documents more than once? Typically your loan will not be considered for assistance and review without all required documents submitted to the lender correctly; so if your documents are not being recorded and you know they have been sent properly, how is that affecting you? Get clarification.
Tip #3. Once your file is under full review at the lender it should typically take 30 days to get a decision on rather you qualify for assistance or not through them. Has it been more than 30 days?
Tip #4. Get it in writing. Did you get an approval for assistance or a denial? Either way, did they send you something in writing stating what has transpired or was it only verbal correspondence? It will be difficult to hold them accountable if it’s not in writing.
Tip #5. Be aware of hidden costs. While this processes is happening, interest, penalties, and other fees such as foreclosure and lawyer fees can be accumulating. What is the total? If all those penalties and various fees get rolled into the loan are you paying interest on all that? What is the real cost of those penalties over time compounded with interest? What is happening to the equity in your home because of this? Calculate all that, then be honest with yourself, is this really free? Can you get this done for less cost and with less risk another way?
Tip #6: Watch your credit and the long term costs. The more damage your credit takes because of delays the more expensive it will be for you to borrow money in the future when you need a car, home repair, or something vital. The faster this is resolved the faster you can rebuild credit and save money. How can you get this resolved faster?
Final tip & point. Bottomline, actions speak louder than words. If these basic professional actions are not being taken by the lender to help, what does that say about the lender? It’s a simple question.
Remember your value! Time and focus chasing your lender around for help is time and focus taken from your family and job where you earn. Is the stress caused to you and your family really necessary to correct this problem? Who is benefiting from all these fees and penalties?
Time is of the essence with a hardship like yours, only direct action will fix the problem. Hold the lender accountable or take action to get someone who can. You can fix this problem if you do the research, educate yourself and take action.
If you want 4 more result orientated tips or you are running into other problems with your lender and want a second option, call us at 866-818-9192. Our 2020 Hardship programs just have been updated as of July 1st so you will get the most current information. No credit or equity requirements, however you must be working and afford to make regular mortgage payments again to be considered.