The first thing I want to share is that getting a loan modification is not an overnight process. There are multiple stages, and many people that must get involved to have a completed loan modification package. Due to market changes banks/lenders have added more people and more divisions to their already overwhelmed business structure. Mass confusion on the lenders side of the equation is a daily issue. Terms, guidelines, process flows, and even employees at these big banks change frequently. It is the job of the Performance Loan Repair and loan modification processor to keep up with all the changes that banks implement. Our back-end system is a sophisticated tracking program that will show all communication with the lenders; faxes, emails, and phone calls (inbound & outbound). We track every move and allow all of our end users to log for full transparency.

Transparency is a major part of what we do here at Performance Loan Modification. We want YOU the client to be informed at all stages. It is very important to us that you understand why a lender/bank would act at a certain way, or why they would accept your loan modification over another (vice versa). Our job is not only to process your file but to help you bypass the pitfalls that plague others during the loan modification program.

Here are some of the major expectations that you should know about before starting out on a loan modification:

Timelines – Timelines can vary from client to client based on your finical overview as well as the staff of the lender. We have had modifications completed in less than a week, and we have had modifications take over 6 months to complete. This is a major reason why you should only go with a firm that does not collect any upfront fees whatsoever.

Trial Periods – Most major lenders actually want proof that you, the homeowner, can afford to make a new payment if given during the negotiation process. A lender can set up a trial period that can be anywhere from 3 to 6 months to assess your ability to make these new payments. If all payments are made on time and a proven track record of consistent payment is shown during the allotted time period the lender can solidify the loan modification.

DTI (Debt to Income Ratio) – Lenders are always changing guidelines, but the one guideline that has always remained the same is how lenders look at and process the DTI. A normal DTI should be 55% or under, a good DTI for a possible loan modification should be between 75% – 125%. Of course, there are exceptions to that rule so you should always talk to a loan modification specialist before making a decision.

Signing the Final Documents – Once a loan modification is ready to be officially signed it needs to be reviewed by you. The lender gives a set amount of time for such actions, usually 1 or 2 weeks. If the documents are not turned in on time with the correct forms signed it is possible for the lender to reset the process and make us start form the beginning. Our dedicated processing team mixed with the online tracking system prepares our clients for every possibility that may occur during the whole process, including timeline scenarios.

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