The job of a specialist in a lender’s loss mitigation department is to work with borrowers in resolving their mortgage delinquencies while, at the same time, minimizing the lender’s financial loss. Loss mitigation specialists will consider, on a case-by-case basis, different loss mitigation solutions, such as a mortgage modification, short sale, or deed in lieu of foreclosure. Foreclosure, because of the time and expense involved, is often the lender’s last resort.
If you’re one of the many homeowners fighting foreclosure, you probably already know firsthand that dealing with your lender’s loss mitigation department can be a frustrating and often very time-consuming process. Many loss mitigation departments are understaffed. And because there are so many borrowers in default, borrowers are finding that it takes a while for their files to be assigned to and reviewed by one of their lender’s loss mitigation specialists.
How to Speed Up the Process
Once you decide to pursue a mortgage modification, short sale, or deed in lieu of foreclosure, there are some things you can do to speed up the approval process with your lender’s loss mitigation department and ensure your file doesn’t get lost in the shuffle.
- Whether your lender’s loss mitigation department contacts you or you contact them, keep detailed notes of every phone call. Get the name and employee ID number of each person you talk to, as well as any contact information, such as direct phone number, email address, fax number, and mailing address. Note the time and date of each phone call, as well as the subject matter of the call and the steps that either you or the specialist are to take. Ask when you can expect your request to be approved.
- Keep all paperwork you receive from or send to your lender organized in one easily accessible location. There have been horror stories of borrowers having to fax then refax to their lender the same set of financial documents. If this happens to you, you won’t have to search for the same document again and again if you keep your documents filed away in one place.
- Even if the loss mitigation specialist tells you that they won’t have any new information for you for a few days or weeks, call back every day and ask about the status of your application. If it’s the squeaky wheel that gets the grease, you want to be as squeaky as possible.
- Be sure to fill out any necessary forms completely and accurately and to attach all financial documents that your lender requests. After you fax or email those forms, call the loss mitigation department to confirm that they’ve been received. If you mail or overnight any documents, make sure to request delivery confirmation. Don’t depend on your lender to contact you about any missing or incomplete documents.
Hire an Attorney
Many homeowners have successfully negotiated with their lender’s loss mitigation departments on their own. However, if you can afford to, you may want to save yourself the headache of trying to work something out with your lender and hire someone to represent you in your negotiations with your lender, such as an attorney with experience handling foreclosures and negotiations with loss mitigation departments.
