Depending on what era you’re from or what time frame you are talking about Mod (originally modernist)would refer to the subculture that originated in London, England in the late 1950s and early 1960s or a later use of Mod or modification refers to PC games. Now, in this depressed economy the term Mod is now used in reference to Loan Mod (or Loan Modification) where stressed homeowners work with banks over their distressed property. The bank and homeowner attempt to work out a loan payment reduction either in terms of lower monthly payments via a lower interest rate, and more recently a principle reduction as well.
Unfortunately we’ve seen that the loan mod plan is not exactly in high gear. At the moment only 9% of eligible homeowners are taking advantage of the loan mod plan and have modified their loan terms.
One of our reliable sources at Wells Fargo mentions to us and to potential loan mod requesters is that for anyone seeking a modification review they should be aware of the tight time frames they are given to return documentation. Our Wells Fargo person says that numerous times the homeowner receives a call from their mortgage company but they do not return the call. Legally the bank cannot leave a message advising that they are calling from the loss mitigation department so it may sound quite similar to a message left by the collections department. Homeowners should return any calls they get from their mortgage company ASAP, usually within 24 hours to ensure that their review is not denied for lack of cooperation.
Everyone should be aware of this possibility, however in some cases they are not aware that if the bank does not get a response then they will not always continue with a review if more information is needed.
Now let’s get those loan mods revved up into a higher gear.