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Loan Modification Tips – When To Escalate

By Guest

Sometimes waiting in line is smart. Like, for instance in the security line at the airport. However, if you are waiting in line for a loan modification, you’re nuts. In the line ahead of you are hundreds of thousands of frustrated homeowners just like you. Instead, you’ve got to get “Out-of-Line” and up to the front of the line. That’s right. Take cuts!

In the current Loan Modification Frenzy, the “line” is too long. Hundreds of thousands are in the queue ahead of you with more than 50,000 added per week. The banks can’t staff and train and manage and retain nearly enough workers and the systems and procedures are overwhelmed as well. Add to that the fact that the banks are only begrudgingly cooperating with the effort – and you have a formula for frustration and failure.

Only 4% of us, at the front of the line are getting good modifications. so, let’s continue to figure-out just what theyare doing and copy it! In several recent articles I’ve described the way the winners construct their applications and follow-up on their files to leverage “File Inertia”. Let me now describe how they escalate problems when they occur.

The broken process for evaluating loan modifications always produces problems. Erroneous rejections, incorrect assessments, unnecessary and redundant information, etc. I advise my clients to: 1. Ask 5 Times, 2. Escalate Well and 3. Escalate Well Beyond.

1. Ask 5 Times The common problems are easy. For instance, if they misplaced your 4506-T Form, send them another one. If they request 3 months of bank statements instead of the usual 2send ‘em in. But, when you get information from the agent that is just wrong, and you can’t seem to get them to perceive it…That’s when you should Ask 5 Times. Call back and try another agent, 5 times. That’s right, it’s not worth it to try to prove your point and sometimes the agent is just not trained well enough to ever understand your question or concern. If you burn through 5 agents and can’t get the “right” answer, then ESCALATE.

Escalation means going up the chain of command. It means requesting that a manager or supervisor review the situation with you. Be sure to do this politely to minimize the snub to the agent but be firm. Simply say (to the 5th agent) “Please connect me to your supervisor, will you? This matter is ust too important to me to let this go. I want to hear it from a supervisor”. Sometimes the agent will obligeand other times the agent will argue with you. I believe that sometimes too, agents will ask their co-worker to pose as a manager for the call. It may happen that the manager will have to call you back. Don’t hold your breath. Occassionally you will get lucky and a well trained and well informed manager will get on the line and provide some real vaue.

Escalate Well Beyond means taking your problem beyond the Loss Mitigation Department to seek assistance and support from other departments, or from bank executives, regulatory agencies, politicians, trade associations and even the press. Don’t think that your situation is too small for any of these entities to care about or to take action on. The secret to getting their support is to request it in a manner that indicates that you 1) have used all the correct channels already, 2) understand their role and have appropriate expectations for what they can do on your behalf, 3) know exactly what you want them to do and by when and 4) that you are the sort of person who will escalate right past them if they do not respond.

These Escalations Well Beyond are incredibly effective. Recently one client was assisted by the CEO of Aurora Loan Servicing, another by a local Congressman’s plea to the OTS and a third by a U.S. Senator! Who’d a thunk it?

This housing crisis has hit so many of us that, generally speaking most people are sympathetic and willing to lend a had if they can. So, getting the assistance you need is really about having the nerve and the street-smarts to ask for it well.

Learn more details about effective problem escalation – and get examples of successes.? Visit Rockwood’s site about DIY Loan Modification at Home Loan Modification

categories: loan modification,home loan modification,mortgage modification,mortgage workouts,foreclosure,mortgage,finance,debt,business,Economy,housing,personal finance,Real estate

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Article Citation
MLA Style Citation:
Guest, Guest "Loan Modification Tips – When To Escalate." Loan Modification Tips – When To Escalate. 12 Jun. 2010. 18 Jul 2014 <>.

APA Style Citation:
Guest, G (2010, June 12). Loan Modification Tips – When To Escalate. Retrieved July 18, 2014, from

Chicago Style Citation:
Guest, Guest "Loan Modification Tips – When To Escalate"

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