The loan modification process is a unique and slippery beast.

Dealing with a lender is never an easy process and will normally be slow and arduous. On top of this, Loan Modifications are currently different for every lender and standards change even within the same lender on a weekly basis due to the new legislation that is being passed by the Obama Administration. This is why i say that loan modifications are unique and slippery. For a borrower to successfully deal with a lender they are going to need something that will set them apart from the hundreds of other borrowers that are requesting loan modifications, knowledge of how the process works, and a gameplan for how they will achieve their modification.

Here are a few tips to help the average borrower increase their ability to successfully negotiate a loan modification.

Get a Forensic Loan Audit

Getting a forensic loan audit will allow the borrower to separate themselves form the hundreds of other borrowers who are contacting their lender to receive a loan modification. The Forensic Loan Audit will also strengthen your position by giving you legal leverage against the lender. Rather than just relying on a financial hardship you will also be putting the lender on notice of predatory lending violations.

Present yourself as a Good Candidate for Loan Modification

The most common mistake that people make is to understate their income, assets, and ability to pay a loan modification. The typical mindset is that as the borrower you should make your situation look as dismal as possible to convey to the lender that you cannot pay your mortgage and need help. However, this tactic usually backfires, if the lender sees you as being unable to pay even a modified loan then they will not want to work with you and will just foreclose on you now rather than later. The best tactic is to come up with a loan modification that you will be able to pay and is reasonable. The lender will be much more willing to work with you if they see that you are generating income and will be able to pay the terms of the new loan modification.

Be Patient and Courteous

This may seem like commonsense, but it is a very important point. Loan modifications take time, typically a minimum of 90 days, it is important to be patient during this time. If you are calling and badgering the lender everyday you will just be needlessly taking up the time of the people who are supposed to be working on your loan modification. If someone says to follow up in 3 days, follow up in 3 days. A concept that goes along with this is the idea that you should be courteous to everyone you work with from the lender. Your never know who has the power to help or hinder your loan modification so making enemies at the loan modification department is never a good thing.

These are just a few tips to help borrowers get the most out of their negotiations with the lender.