Lee Castillo, 34, is an IT systems engineer with zero experience in the mortgage industry. But when he found out that his friend had been scammed by a loan modification company and was a week away from losing his home, Castillo decided to get involved.
(Read the full story HERE)
Lately I’ve been hearing a few success stories of loan modifications. Just a few, but it is better than nothing! In each case the story is one of lost papers, inconsistent information from the bank, but a dogged determination from the homeowner sprinkled with a good dollop of luck.
Yesterday I had lunch with a dear friend and mentor. She has been trying to get her loan modified for nearly 2 years. A sudden life change drastically altered her financial situation, but she was confident that if she could just get a modification for a few years she could get back on her feet. For this story I will call her Nancy.
Nancy kept detailed records of who she talked to and what they said. She maintained a complete file that she could resend at a moment’s notice and she constantly followed up. Constantly. Nancy maintained a cool head (most of the time) when talking to various bank people, and did her best to remember that, for them, it was not personal. She hired a loan modification company- but she does not feel they really helped. In the end, it was Nancy’s consistent follow up and her ability to maintain a cool head in the face of bureaucratic nonsense that carried the day.
Sadly, it appears that the tipping point was when she stopped making her payments. Nancy felt strongly that she should continue to make her payments for as long as she was able, but her friends finally convinced her to stop. Two months of non-payments and Nancy’s bank seemed to really change their tune.
This story is not the average story. First, Nancy was not seeking a permanent modification and second, she is an unusually competent communicator. For every Nancy there are 10 people who should qualify for a modification and are getting no where.
In the few success stories that I have heard there is a few consistant themes: unyielding determination, consistant follow up and a make sense business proposal for the bank.
If you want to read another (almost) success story, click HERE. Fellow blogger and friend, Tracy King, has a client who tells her story of loan modification.
Do you know of someone who has been successful? Please share what worked. I sense that the banks are becoming more reasonable (I hope) and the more we share, the more we help!