Michigan's Loan Modification Program

to learn more about:

     Our Ace's Credit Solutions for:

•      Forensic Loan Modifications
•      Forensic Audits/Reviews
•      Debt Settlement
•      Credit Repair

     Loan Modifications may take from 1 to 3 months to be accepted into a loan modification trial program, and then 3 to 12 months to reach the final closed phase of the loan modification.  Every lender/bank has different guidelines and rules to follow as well as legislated and private investor criteria, rules and guidelines to follow.  Each loan is unique and thus quite difficult to predict which one will successfully close.  It does cost between $40,000 and $80,000 to foreclose upon a piece of property; and also since there is a high rate of foreclosures, there is some incentive for lenders and banks to work with the homeowners to modify their loans or provide repayment plans so homeowners can meet their monthly mortgage payment obligations and keep their homes.

     The Loan Modification Process Flow is as follows:

1. Client fills out the Prequalification Form or expresses an interest in getting their loan modified.
2. If the client is a good candidate (eg. financial hardship is over and has income to support the loan), a Complete Application is taken (information recorded, documentation etc.).
3. Review of application is completed to ensure all documentation is complete for submission.
4. Quality Control - Once the application is submitted to the processing company, the processor verifies that they have all that is needed, or is passed back to the manager.
5. The processor works with the manager and application to get it in the best state to be sent to the bank seeking approval.  Additional documentation and updates may be required from the homeowner in processing the application.
6. The Application is Submitted and the processor works with the bank to get the application approved.  Again additional documentation may be required from the customer.
7. Trial Period - the bank will require the customer to meet the modified loan terms over a trial period to verify that the customer will be able to make the payments.
8. Final Submittal - After the trial period has expired, the application is submitted to the bank for final approval on the loan modification.  During this phase, the bank may require additional or updated documentation to verify the custome still meets the requirements.
9. Closed - Once the application has been approved by the bank, the application reaches the closed phase.  At this point the loan modification has been accepted by the bank, and the customer should be notified of the success.

*Note:  At any time during this whole process until closed, the servicing company/bank has the option of cancelling the loan modification and if necessary, foreclose.  So, it is very important that the homeowner provide all documentation when asked and makes timely payments upon agreement(s).   Organization is also the key.  It helps, if the homeowner stays organized and keeps track of all pay stubs, all bank statements and pages, billing statements etc..   Sometimes, the processor needs a certain document within 24 to 48 hours -- this can be extremely sudden.

  **Note:  If in the meantime, the loan is sold or transferred to another servicing company/bank, the whole process may have to start again or may be flatly refused.  So obtaining a loan modification is not guaranteed and to some extent in getting a loan modification, one must be lucky.

How To Begin Communicating With Lenders: for a Loan Modification:

1.  In asking/applying for a loan modification from the lender, one needs to be polite and clearly explain in detail and with dates the financial hardship as to why one fell behind in the mortgage payments or are struggling to make the mortgage payments.   The hardship needs to be a true hardship (taking a vacation to  Florida rather than paying the mortgage payment is not considered a hardship); and explained in writing by letter form.   Within the letter always:

A.  Submit letter in your own handwriting. 

B.   Include your loan number and full contact information (within all documents /pages you submit to the lender).

C.  Include your lender contact name, their direct email, fax number , and phone number  (Always try and get the names of people you talk to when calling your lender and keep a log of the date, time, parties, and discussion.)

D.  Send all letters and documents by certified mail with a return receipt requested.  Keep the receipts you get from the Postal SErvice -- they're evidence that you sent, it was received and not lost.

E.  Explain all the events sequentially and in detail which caused the current hardship:

• Unemployment
• Loss of Income
• Business Failure
• Separation or Divorce
• Death or Illness in the Family
• Medical Bills
• Adoption or Reuniting/Brining family members from foreign country
• Other

F.  Always be appreciate and nice to the lender contact

G.  State that you need consideration in this difficult circumstance(s) and both you and the lender can benefit if some sort of positive accomodation can be made, and that this will never happen again.

H.  Sign Letter and date it stating that this is true and correct to the best of your knowledge

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