Phoenix Loan Modifications: How Long Until It’s Done?

Like anything else financing related, loan modifications can take a long time. Their time line is similar to a short sale; 4-6 months is what we tell people who inquire. That being said, we just completed one in 32 days from the time we took the contract to the new payment being notarized and approved by the homeowner. That is definitely not typical. You just need to be prepared in case it does.

The longest wait is getting the file assigned. That alone can take up to a month. We always push to get them through quicker, especially if payments are being missed, but unfortunately we are at the mercy of the banks. Sometimes, the bank will acknowledge your package and say “Call us back in 2 months.” Why would the bank do that? The cynic in me believes that they are trying to weed out those that don’t really need a modification. If you are making payments to them, and you can hold off 2 more months before anything happens, they just got another couple of house payments from you.

How do you/we expedite the process? The trick is to know when to push and when to lay off. If you push too hard, the processor (the banks) will get sick of you and there is nothing you can do to stop them from trashing your file or just saying “you don’t qualify.” I wish I could say that isn’t how it goes, but sometimes there is no other explanation for why a file wouldn’t get approved.

The other thing you can do is to make sure ALL of your paperwork is turned in right up front. The bank really does want to see the last 2 years of your tax returns. If we have to file a 4506-T to get them from the IRS, you just added 3-6 weeks on to the process. Whether you are doing it on your own, or having us help you, DO NOT SUBMIT AN INCOMPLETE FILE. This can not be stressed enough. If you do, the bank will simply move it to the bottom of the stack. We will not process loan modifications (or a short sale) until we have a complete file. It is not worth the hassle.

If you are trying to get a loan modification done, or if you have been told you don’t qualify, give us a call. Sometimes you really don’t qualify for a loan modification and a short sale is your best bet. Other times you were lied to. Either way, give us a call and we can check out your file and tell you whats going on.
(480) 389-5199