How Long Does A Loan Modification Take?
How long does it take to get a loan modification? Of course, the answer is that there is no sure-fire answer.
Loan modifications rely on several factors; responsiveness and policies of the lender, the effectiveness of the mitigation company, preferably a well versed attorney, and of course, the commitment of the homeowner. There are many parts that sometimes come together for a quick solution (less than 60 days), but usually take much longer. Let’s look at the issues that effect how long a loan modification can take.
The Mitigation Company
Lenders are strict and have rigorous requirements, an effective mitigator is important to moving the process along quickly.
In the beginning, there is a lot of preparation work that includes compiling financial information and other pertinent information to your case. An effective law practice will have a proven process and will ensure that you are providing the necessary information in a timely manner.
Once your file is at the lender, your attorney will ensure that the inevitable requests for updated documentation are relayed to you and processed quickly. Valuable time is often lost if responses are not met immediately
Responsiveness and Policies of the Lender
This is by far the most variable and important issue to the modification duration. It is usual to take around 4 months, but can be highly variable. In some cases the process may take six months or even a year depending on the complexity and commitment of all the parties.
Some lenders are committed to the modification process and are organized in such a way that they can move quickly. However, it’s more common to see lenders taking their time and dragging out the process.
If you attempt to do a loan modification on your own, expect to get the run-around. Lenders are often looking for reasons to deny a loan modification. You probably won’t find them too responsive to your requests for immediacy. In many cases, they are understaffed, but often, their policy dictates a long, drawn out process.
Commitment of the Homeowner
If you do decide to use an attorney your commitment is vital to the process. There are established methods of doing things and the process can move quickly, but without your cooperation, it does not work. If a homeowner does not comply with documentation update requests, it kills the process and can result in setbacks in the case. Always respond quickly to any requests whether they are from an attorney you hire or the lender itself.
I think the bank just creates problems and just leaves you in limbo.I sent in all the forms in july they did nothing with them.In september sheriff showes up at my door.call bank they tell me the paper work they have is to old. I sent all new form in. Now in Febuary I have to send it all in again. I think thay try to make you crazy. Like life is not hard enough.