Tips on Working with Loan Servicers

1. Explain the reason for default; determine if it's a long or short hardship.



2. Encourage client to save as much money as possible so they'll have a contribution or down payment towards the loan modification. It also shows commitment to the home.



3. Submit a complete workout package to the servicer. If any information is missing, explain the reason in a cover letter so it will not delay processing.



4. Be open to the servicer's proposals, but have a plan "B" prepared.



5. Present the client's total budget. Servicers will want to see a monthly budget surplus of $200-$500 a month for a retention option.



6. Follow-up with the servicer every two weeks.



7. Let the servicer know the homeowner's desire to stay in the home.



8. Do not hesitate to escalate the case to a manager.



9. The servicer will try and negotiate around you by calling the client directly. Instruct the client to let you know about all servicer contacts.