Mortgage servicers get sloppier during the loan modification process than they do during the loan origination process, according to the recently released J.D. Power and Associates' "2010 U.S. Primary Mortgage Servicer Satisfaction Study."
That means you'll need to take the initiative and learn the ins and outs of the mortgage modification process before diving in.
"This will not come as a great surprise to many homeowners who have had to endure the tribulations of loan modification," said Bruce Hahn, president of the American Homeowners Foundation.
A mortgage modification occurs when the lender reworks the terms of an existing home loan, typically to lower payments and make the home more affordable, according to a helpful and inexpensive resource, Silver Spring, Md. — based mortgage expert Peter Miller's "The Quick & Dirty Guide To Successful Mortgage Modifications" (Silver Spring Press, $2.99).
To get the payment down, mortgage modification lenders lower the interest rate, extend the loan term, reduce the principal or use any combination of those approaches. Modifications are often used as an alternative to foreclosure.
"With more than a million borrowers signed up for mortgage modification programs, the overall result is that most are wildly unhappy with their loan servicers," says Miller, whose publication uses an easy-to-understand linear approach that takes the mystery out of the mortgage modification process, a process which apparently stymies even lenders.
According to J.D. Power, compared with the loan origination process, mortgage servicers do worse in mortgage modifications in a host of areas.
> In terms of providing and meeting a time frame for approval.
> In terms of asking for information more than once (in order to be sure to obtain information crucial to the modification).
No comments:
Post a Comment