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Saturday, July 6, 2013

How to negotiate a loan modification with your bank

How to talk/negotiate with your lender/bank

 As a homeowner, you have the ability to negotiate with your lender successfully if you are armed with the proper loan modification information and guidance. Many homeowners are now opting to contact their lender and represent themselves instead of  having a third party such as a “loan modification company” that may or may not be successful not to mention the fraudulent companies who are ripping off homeowners every day. The money you waste with them could go towards your mortgage payment.

Again, you can get good results negotiating with your lender as the owner as long as you have the proper information. Consumer education is always the best defense says +Dianne Langston 

Before you contact the lender, let us take a moment and look inside their world…shall we? 

Did you know that your lenders loss mitigation representative may have one hundred to three hundred files on their desk at any given time?  It’s true. That is a tremendous amount of pressure and responsibility to endure.

It is important to understand what they are dealing with BEFORE you contact them.  You will have a better shot of establishing rapport if you are sensitive to this. 

Loss mitigators are usually trained by the lender you are dealing with such as; Countrywide, GMAC, CitiMortgage etc. all have programs set-up to train loss mitigators on loan modifications, negotiating and loss mitigation tactics.

In loss mitigation, the turnover rate is VERY HIGH!


It is difficult to hire an individual that can endure listening to extreme hardships day-in and day-out from homeowners.  That is why it is such a breath of fresh air when YOU contact the loss mitigator in a positive, professional and courteous manner.

Sometimes you can almost hear the sigh of relief in their voice when you speak to one for a long time and build rapport with them. 

I’m still amazed how they can handle so much negativity on a consistent basis. Regardless, they still have a job to do for their boss (the lender). 

They collect information from all parties to PRESENT to their superiors.

Keep in mind, the loss mitigator typically will not have the authority to make the FINAL decision on whether or not your offer will be accepted. The decision is made by his/her superiors.  

 *However, he or she has a pretty good idea if you will be close enough to get his or her superiors to accept your offer. 

How about learning their LANGUAGE? 

Perhaps you have called a loss mitigation representative in the past and were greeted with a message that goes something like this.

“You have reached Bob in Loss Mitigation for X Company, Please leave the loan number or social security of the file in question…  Note: Please leave only one message, leaving multiple messages will cause further delay or will be erased! – THANK YOU… GOOD BYE!”

That was a bit to the point…you think? 

What was learned from this? 

 The loss mitigation representative is busy and will get back to you on HIS/HER time…not yours. Furthermore, if you choose to leave multiple messages you may not get a call back. 


You just learned MITIGATIONEZE. This is extremely important because you will hear it and maybe even “SPEAK” it in all aspects of your negotiations with them.

This is another reason you will be set apart from other home owners. If you try to negotiate without knowing their language you will be at a HUGE DISADVANTAGE. 

Think about it this way. Have you ever gone to another country that speaks a different language and asked for directions on how to get from point A to B? 

If you don’t know how to speak the language - you look like a fool and you are susceptible to all kinds of manipulation. The same concept applies here.

Once you learn to communicate correctly you build credibility with every word. You also show respect and make the most of the little time a loss mitigation representative may give you to work out your deal. 

Once you turn in a loan modification package the EXACT WAY the loss mitigation representative needs it to submit for approval, your chances of getting an acceptance GO WAYYYYYYYYYYY UP.

They barely have to think about it because everything is in place… all they have to do is submit it and write a short reasoning letter to their superior.  The loss mitigation representatives LOVE IT when they do not have to spend extra time on an incomplete loan modification package.

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By Eric D. Muhammad

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