November 19th, 2009
Step-by-Step Guide to Rental Property Loan Modification – Part III Follow Up and Keep All Documents Up-to-Date
Step 2: Fax or Mail the Entire Package to your bank
We do not recommend mailing the initial package or any follow-up documents to the banks, as that makes the bank more likely to lose them. Most banks now prefer faxed documents and can usually get them into their system in 2-3 business days. It’s a good habit to place a call into the bank 3 days after you fax documents to ensure they are all legible and all the required paperwork is complete.
Depending on the complexity of your financial situation, be prepared to handle more papers than you’d like. Digitalization them will help you save time. Even though you currently have a printer and a fax machine, it will be worth your time in the long term to transition into the recommended method described below. This is especially true when you are trying to modify multiple loans or when you have multiple properties to report to the banks.
First of all, get a scanner or those All-In-One Printers that come with scanner, fax machine, copier, and printer. We recommend a machine like Brother MFC-490CW because it’s compact, inexpensive, and can scan multiple pages in one shot. If you haven’t done so already, start scanning and digitalizing documents in the mail. Most documents can be downloaded from the Internet such as your bank statements, property insurance statements, pay stubs, etc.
Next, get an online fax account, which costs a fraction of a fax machine. You also pay a small price per page compare to what your long distance calls would be from fax machine. We like MaxEmail.com which charges 5 cents to fax one page.
It may take some effort initially to transition into an all-digital format. Don’t give up. It will save you time in the long run.
Do-It-Yourself Kit: Rental Property Loan Modification lists the fax numbers you should use to submit your initial loan modification package. Some banks have a specific fax for the initial packages and a different fax number for future follow-up documents. Other banks use the same fax number. It also includes more specific instructions and more tools you can use to become fully digitalized in short amount of time.
Step 3: File Assigned To A Negotiator
Call the bank about one week after the initial package submission to confirm their receipt of it, and that all documents are complete and legible. Make sure the representatives route your package to the appropriate department that handles rental property loan modification. Most banks have a separate department that deals with investment properties.
Short sales have become so popular these days that phone representatives can mistakenly route your request to the short sale department rather than the loss mitigation department. Ask these questions to ensure your file gets a good start.
Your file will be assigned to a negotiator or processor who works in the loss mitigation department. They are different from the phone representatives you typically are able to talk to when calling the banks. The negotiators work in the backend and can only be communicated through messages sent from the representatives. It usually takes 2-4 weeks for a new file to be assigned to a negotiator.
Step 4: Follow Up and Fax Updated Info Regularly
Once your file is in the hands of a negotiator, it officially enters the waiting mode. You will get a standard answer from the phone representative that you have to wait for 45-60 business days for the negotiator to get to your file. Sure, it’s not the fastest process in the world if your mortgage payment is current. If you are already late in your payment, your file will generally get higher priority and be processed sooner. If your loan is already in foreclosure proceeding, it’s sometimes possible to get your loan modification reviewed within 30 days.
Be warned: we don’t recommend that you stop paying your mortgage in order to expedite the loan modification process. The late fees can add up, and these will become a big problem should the loan modification not get approved. On the other hand, late fees are usually eliminated and the account is reinstated back to good standing after a successful loan modification.
We recommend following up with the bank every other week to make sure you know what additional documents they are looking for. Most banks do not send letters to update your file’s status. You are left to find it out by calling them regularly.
You should also ask phone representatives the name and contact information (email, fax or extension) of your file’s negotiator, because some small banks do allow the information to be shared. Also ask the phone representative to send a message to your negotiator, and try to make contact with your negotiator regularly as well. Most of the time you will not get a response directly from the negotiator until he or she is ready to review your case; however this will ensure your file gets regular updates and moves along in the waiting queue.
The documents you are requested to update on a regular basis are income proof, financial worksheets and hardship letters. It’s a good habit to fax the latest income proof (either pay stubs or profit and loss statements) and newly dated financial worksheets and hardship letters to the bank on a monthly basis, regardless if they request them or not. The updated documents will keep your file up-to-date so the negotiator has all the information needed when finally getting to it.
You can leave a comment, or trackback from your own site.
9 Responses to “Part III: Step-by-Step Guide To Rental Property Loan Modification – Effective Way to Follow Up w/ Lenders”
Leave a Comment
Tags : 
Your shopping cart is empty
|
|
Skype |
| Cheapest way to make and receive calls anywhere. |
|
|
myFICO |
| Cheapest way to monitor your credit monthly. | |
|
|
Priceline |
| Cheapest way to travel for remote landlords. |
- Investment Property Loan Modification / Lease to Own / Purchase Option / long term lease to own / Short Sale and Deed In Lieu Of Foreclosure / seller financing / owner financing / Real Estate Contract (REC) / land contract / contract for deed / craigslist / cash flow / real estate tax / deficiency judgment / remote property management / Property and Rental Management / option premium / rental advertising / foreclosure / loss mitigation / bank negotiator / loan modification trial / online rental property advertisement / property manager / tax deduction / Internet Power and Paperless Real Estate / installment sale / wraparound mortgage / balloon loan / pre-payment penalty / hardship letter
[...] Continue to Read the Part III and more on RealInvestorTips.com Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]
[...] Continue to Read the Part III and more on RealInvestorTips.com Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]
[...] Continue to Read the Part III and more on RealInvestorTips.com Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]
[...] Continue to Go through the Aspect III and more on RealInvestorTips.com Mortgage Modification – Aspect III : Successful Way to Comply with Up with Lenders [...]
[...] Each bank has its own computer system which has different criteria. It’s critical for you to meet their system’s criteria. While this article will not list the criteria for each bank, Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]
[...] Continue to Read the Part III and more on RealInvestorTips.com Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]
[...] Continue to Read the Part III and more on RealInvestorTips.com Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]
[...] Each bank has its own computer system which has different criteria. It’s critical for you to meet their system’s criteria. While this article will not list the criteria for each bank, Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]
[...] Each bank has its own computer system which has different criteria. It’s critical for you to meet their system’s criteria. While this article will not list the criteria for each bank, Loan Modification – Part III : Effective Way to Follow Up with Lenders [...]