Part 2 in the 10 Steps to Loan Modification ProtocolFirst read Steps 1-5 to mortgage loan modification protocol by clicking the link belowSTEPS 1-5 TO MORTGAGE LOAN MODIFICATION PROTOCOL 
If you have accomplished steps 1-5, you are ready to CONTACT YOUR LENDER.
Step 6 to mortgage loan modification protocol6. Keep a journal. Every time you call your lender, write down the name of the person and date of when you spoke. Briefly write about what was discussed.
Step 7 of the mortgage loan modification protocol...7. Ask for the "Loss Mitigation Department." Not just anyone that answers the phone can help you with loan modification. It doesn't hurt to ask to speak with a supervisor if you are not making progress. Just make sure you don't appear demanding or hot-headed. Loan modification is a "hat in hand" gesture where you are attempting to change the rules of the game. When you procured your original loan, you agreed to all the terms—to pay the lender back with interest. Now you are asking to change the details of that commitment. Never lose sight of that. If you let someone borrow $10,000 would you immediately agree if they tried to talk you into letting them pay back only $7,000? You would try to get back as much of your $10,000 as possible and hopefully some interest as well. This is the lender's mindset. Your lender has a business perspective—nothing personal. Even if they sympathize with you, they still must protect their own interests.
Step 8 of the mortgage loan modification protocol...8. Allow 15 to 60 days for the modification process. The bank prioritizes modification requests according to urgency. If you are close to foreclosure your request will be dealt with more quickly than someone who has not missed a payment yet.
Step 9 of the mortgage loan modification protocol...9. Give the lender the benefit of the doubt. Most lenders are honest and meticulous about observing lending rules and guidelines. If you feel your lender has used (or is trying to use) deceptive or unfair mortgage practices, you have the right to request that your lender check their accounting, explain all fees and penalties, and make any necessary corrections . To find out how, go to http://www.e-home-mortgage-loans.com/hardship-letter-template.html and read about a "Qualified Written Request". Step 10 of the mortgage loan modification protocol...
10. Don't give up. Many homeowners are walking away from their homes – walking away from all the work and money they have invested. While it is true that some people are in homes that they will never be able to afford, banks are overloaded with foreclosure inventory. They are motivated to find a way for you to avoid foreclosure. Think of all the payments you've made. Staying in your home is the only way to save your investment. Lenders frequently bundle their loans together and sell them as mortgage backed securities. Your original lender may have sold your loan to another institution. This is standard practice and is no reflection on you as a client. Your bad loan may not be your current lender's fault. Keep that in mind. Hopefully it will prevent you from mentally vilifying your lender. Be advised, the lender's goal is to get as much of their money back as possible. Lenders use complex math formulas to make decisions. There is a formula that determines something called the Net Present Value of your home. NPV is used to determine whether the lender stands to make more of their money back through foreclosure or through loan modification. If calculations indicate that the lender can make more money through foreclosure, they will reject your request for loan modification. Not all loan modifications are good, and misunderstandings are common. Make sure you know what you are getting into. Along the way, you should ask lots of questions: · Ask if your interest rate reduction is temporary. You may think you are getting more concessions than you really are. · Ask what your loan payment will be once the modification is complete. · Ask if your payment reduction is temporary. If so, ask what your future payments will be. · Ask what your final principal balance (the total amount you owe) will be. What kind of reduction can you expect? The banks tend to use the 30% rule when determining their idea of how much you can afford. For example, if your gross monthly income (that means BEFORE taxes) is $5000 -- or $60,000 a year -- the bank's calculations say you should be able to make ends meet with a mortgage payment of around $1500 a month (30% of your gross monthly income). Don't expect them to go much below the 30% mark. If you cannot pay 30% of your monthly income for your mortgage, you may be in a home you cannot afford. There are other ways to avoid foreclosure, though. To read about the many alternatives to foreclosure, go to
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