Loan Mod Members|Apr. 1

Duration: 00:40:00

Ryan Rockwood: Welcome to the show. This is the 60-Minute Loan Modification Insider Secrets Teleconference Series. We’re here to beat the banks, save your home, and help you escape bad debt forever. My name is Ryan Rockwood and as usual, I’m joined by my father and business partner, Mike Rockwood.

Mike Rockwood: Good evening.

Ryan Rockwood: As you know, there are two ways to join the call. One is by phone and one is online. Now, you cannot – you have to commit to one or the other. You can’t listen on the phone and watch on the computer or you’re going to have some sync issues. So, fair warning, do one or the other. But anyway, welcome to the show tonight. We’ve got a great show here for you. My dad is going to be the – like priceline negotiator guy, you know from the commercials, William Shatner.

Mike Rockwood: Yes, we’re talking about ninja stuff too, right?

Ryan Rockwood: All right, let’s do it. So, anyway, welcome to the call. This is a members-only call so …

Mike Rockwood: No holds part [phonetic].

Ryan Rockwood: Yes, we can say anything. Also, we’re going to start taking some calls again. I missed that inner activity that kind of sense of what goof ball is going to show up on our phone line this time and say something? You know what I mean? So we’re going to do that too. So, if you got the e-mail today, which I hope you did, we also tried out a new e-mail image template. We’re going to move – change up the template. But the idea is the same. It’s a little a little bit clear. A little bit easier to see, I hope. Anyway, in there, there is the conference line. You can dial in and ask some questions. But, you know, if you’re that guy, don’t – you basically just dial in. Put the phone down. And when it’s question time, jump on the phone.

Mike Rockwood: There you go.

Ryan Rockwood: And engage, okay. So, don’t be shy. Go ahead ask those questions and we’ll get rocking and rolling. How do you want to start out?

Mike Rockwood: Well, I think we want to – because everybody’s – it’s kind of the topic of the day. We want to be sure to let everybody know that we continue to accept and continue to look for applicants for this new short-re-fied [phonetic] type of a program that we are promoting. It is a principal reduction refinance. And we’re looking for more applicants. We already have plenty, but we want to – we want to keep flooding them with applicants.

The situation is we’re looking for people who are significantly upside down. You have to be at least 20% upside down on your first mortgage. So, if you are very upside down on your mortgage and if you are in default, and the third thing is if you have enough income to qualify for a new mortgage, a mortgage for 100% of the value of your home in today’s market, then you might be a great candidate for this good mortgage restructuring product that we are big proponents of. So, if that describes you, please contact us. We would love to help you look at the product and think about whether or not it’s for you.

And then secondly, I always – I think we, you know, do ourselves at this service if we don’t mention to everybody that the Credit Card Cure program that Ryan started a few months ago is like more than just kind of a big success. It’s a really big hit and the people are making tremendous progress in terms of shedding credit card debt. In just a few short months, a number of members have gone from having significant debt. Some people are already settling on debts just after a few months. So, it’s a really powerful program of credit card debt settlement. And if you are significantly burdened by credit card debt and you don’t even see how you can make your payments, even those silly minimum payments that they ask for, then think about signing up for getting part – becoming part of the Credit Card Cure.

All right, any other announcements before we start talking about negotiating?

Ryan Rockwood: Nope, that’s it. Let’s do it.

Mike Rockwood: Okay, here’s – here are my tips for negotiating. And these, you know, really I got to say, I mean, I don’t mean to brag but I’ve been negotiating all my life. I was a career marketing and business development guy with a high technology firm and have been negotiating real estate deals forever and have been telenegotiating foreclosure deals with lenders for many, many years. And, of course, you know, we’ve been doing loan modifications and credit card debt settlement by phone for a couple of years. So, I know of what I speak and these tips that I give you, honestly, you should really take to heart because most of you haven’t done a lot of negotiating by phone. And so, listen up.

The first thing that I want to do is recommend to you that you rein [phonetic] in your ego. And by that, I mean that you really should listen at least twice as much as you talk. I always remind people that you have one mouth and two ears. Be sure that you’re listening at least twice a much as you’re talking. And it’s especially important on the phone because you’re trying to pull information out of the other party, out of your opponent. And every time you’re talking, you’re giving away information. So, ask questions and listen them into submission.

I always like to remind people that – you remember Lieutenant Colombo. I think he was a great example of listening people into submission. He would ask silly questions and lead people around with questions asking like he really didn’t understand how things work. And low and behold, people would spill the beans to him. So, another part of that same thing about reining [phonetic] in your ego – because we don’t want to talk, all right – another part of that is don’t be a smarty poopy pants. And the reason I say that is because, you know what I mean. Show respect to the negotiator. They spend all day on the phone listening to angry people about nasty topics and trying to convince them, you know, to settle or to send money, whatever. So, if you talk to them in a respectful manner, give them respect. Honestly, they’ll back in spades.

So, the second thing – so the first one is rein [phonetic] in your ego. The next one is don’t be offended by rude behavior. You’re going to encounter it because, you know, like I said these people talk to angry people, desperate people, about money issues all day long. So, don’t be offended by it. Just kind of expect it. They’re going to be short with you, they’re going to be condescending, they’re going to be brief, so expect it.

Thirdly, be prepared. Know the strengths and the weaknesses of your mod application and know their position and their alternatives and which programs you qualify for, which ones your lender or the investor that owns your note is participating in. Know your alternatives, know theirs, and establish in your mind a goal for each encounter. Every time you engage with these people on the phone, have in mind what the result will be. And as soon as you’ve achieved it, you know, disengage. And speaking of disengaging, remember, you can hang up rather than get nasty with these people.

Then I always recommend that you’re always willing to walk away from any conversation even if it – particularly, I guess if it seems to be going badly. If things are going badly, honestly, just walk away, just get away. Come back to fight another day.

Ryan Rockwood: We might just hang up on this teleconference right now.

Mike Rockwood: I mean, we could do it. Do you want to? Let’s go. Let’s focus – the fifth one is to focus on the agent, their pressures. And I guess this is part of listening. Focus on their pressures and their needs. Don’t focus just on yours because remember you’re trying to a win-win. That’s really the negotiating style that, honestly, hands down is the best. You’re looking for a win-win. They get to complete a file, they get to move something off their desk, they get to feel like they’ve helped you and you get what you want, a good loan modification or the information that you need.

Number six is, don’t give away anything without getting something in return. So, that’s why you have to really keep good notes because once you, you know, you begin to get offers, you want to be sure to make notes of what those offers are because any little concession you have to consider as having been one.

And then I always recommend that you ask for exactly what you want. In the case of loan modifications, we always recommend that you, you know, it’s an enlightened request. First of all, what you can afford. Secondly, what program you think you will qualify for. And the way that we advice people to ask for a particular modification is to ask for a particular payment, and the way we – I recommend that you ask for that – is to make a commitment to it. So, again, it sounds like you’re making a commitment, not making a demand.

So, in other words in your hardship letter, you say something like, “I know that my wife and I can make a $2,400 a month payment and never be late.” So that’s a good way to get to it. So you figure out how much of a payment you really want to get to and then commit to that.

And then, of course, I always recommend that you never lie. And I jokingly always say that it’s too hard to keep track of things that way when you lie but honestly it truly is.

Ryan Rockwood: When it comes to loan mod, the second biggest drown, the 19th biggest challenge, whatever, is remembering what you told them.

Mike Rockwood: Isn’t that true?

Ryan Rockwood: So you can document it later on. And it’s pretty awkward to call and say, “What was my [indiscernible]?

Mike Rockwood: How much do I miss [phonetic]?

Ryan Rockwood: Isn’t it – believe me. I’ve done it, however. You know what I mean?

Mike Rockwood: How much did I tell you this guy spends on a credit card debt? Yes.

Ryan Rockwood: Because I’m trying to Photoshop this W2 or whatever, no.

Mike Rockwood: Right.

Ryan Rockwood: But that can be a point where you really want it [indiscernible].

Mike Rockwood: Okay, so don’t lie. You know, on top of being hard to keep track of it, it’s just wrong. So, and then lastly I always say keep good records. An old negotiator saying is that he who has the best records or the best information wins. So, be that person with the best information every time because a lot of times, you’re stirring the loss mitigation officer.

You know, they just give you some information because they want you get you off the phone because that’s their job is to get through these calls. So, if you have good information, you can stir them in the right direction. You know what I mean? You want to ask questions that force them to really open your file, not just act like they have. So, they really have to do some investigation and see if that person is still your negotiator. See if they can give you the e-mail address. Ask real questions but keep really good records, okay?

So those are nine tips for good telenegotiating. I hope they help you.

Ryan Rockwood: All right, let’s jump to your question. Richie writes in. “I have two houses in Arizona. I was waiting at a loan mod from Wells Fargo. I started the process in May of 2009.”

Mike Rockwood: Wow.

Ryan Rockwood: Yes, but I’m not impressed. Today I was looking – I was on the phone with Wells Fargo or Bank of America, I can’t remember. And it I was reading a statement that had almost the same exact date one year ago. So, that means Steve was probably a couple of months old when I got it, at least, right? Anyway, “I started the process in May of 2009. I stopped paying the mortgage.” Good start. “During this whole time, I’ve waited for a loan mod. My case has been in and out of review twice. They slapped a Notice of Trustee Sale on the door two months ago.”

Mike Rockwood: Oh.

Ryan Rockwood: “The only way a foreclosure could stop now is with a loan mod. I have assigned a negotiator and I know they’re actively working on it. The foreclosure date is May 5th. I want to start a short sale but not tell the bank because I want a loan mod. But if I tell them, they might delay the foreclosure date where a short sale is going on. What is your advice? My second property, I wanted to do a short sale on is in Arizona but it has PMI on it. What does PMI usually settle at?”

Mike Rockwood: The second mortgage on this house? Is that what he’s saying?

Ryan Rockwood: The second property. No, I think he’s saying that both of them are in Arizona and that he definitely wants to do the loan mod on the second property but, no, short sale on the second property but wants the hedges [phonetic] bets the short sale on the first property.

Mike Rockwood: Yes.

Ryan Rockwood: So, I mean the first thing first, you know, PMI is what it is. Just – you’re just not in a better position.

Mike Rockwood: Right.

Ryan Rockwood: You can get it a lot of academics about what could possibly happen, what will happen, will they approve it, will they not, you know. And the truth is, is that you’re just in a worse spot, more hassle so …

Mike Rockwood: But honestly, Rock, you just don’t know it, do you?

Ryan Rockwood: Yes.

Mike Rockwood: I mean, you just don’t know how their …

Ryan Rockwood: And I know that’s in all a weird answer.

Mike Rockwood: How they’re going to pay it.

Ryan Rockwood: Because there should be some standards; however, it just – there just don’t seem to be any that are fathomable to the common man, right? I mean, sometimes the PMI isn’t an issue. Sometimes, it absolutely ruins the whole deal.

Mike Rockwood: Sometimes, it’s the sole [phonetic] stopper. Yes.

Ryan Rockwood: So, I really don’t know what to tell you other than don’t – its kind of a situation of trying not to sweat the stuff that you can’t affect.

Mike Rockwood: Yes.

Ryan Rockwood: You know, like the whole God given me the grace sort of thing, right?

Mike Rockwood: Yes.

Ryan Rockwood: So, focus on what you can affect, what you can change, and let the other stuff watch over you. Start the short sale. Lots of what if’s involved but you’ll get right up to it, okay? Now on the other one …

Mike Rockwood: Now, on this first one though, May 5th is coming up fast, you know. You only have 30 days, so you have to be all over this one.

Ryan Rockwood: Now, I mean, it sounds like he is though. And it is with Wells Fargo and I can’t tell you that in the old days, it certainly – we used to do this side by side.

Mike Rockwood: Yes.

Ryan Rockwood: Modification, short sale. And maybe it’s worth the call to Wells Fargo just to ask them. Well, here’s the situation. It used to be that way. It was no problem and no one even had a problem with it. At some point, Bank of America, anyway …

Mike Rockwood: Yes.

Ryan Rockwood: Decided that it was problematic and they didn’t want two departments wasting their time. They just want one department wasting their time.

Mike Rockwood: Well, see, the truth is, Ryan, it might be two weeks before they get an offer to even take to the bank for a short sale. So, why even bring it up at this point?

Ryan Rockwood: Well.

Mike Rockwood: Just get out there and get that offer because I see your short sale as a backup, you know, or as an alternative.

Ryan Rockwood: Yes.

Mike Rockwood: If you get right down to the wire, you can stop the trustee sale in, you know, within 48 hours of its date with the short sale offer, a good one. You know, that’s just the most powerful way to stop a trustee sale. So what if I were you, I’d get out in the market place, get that in my hip pocket and if right down to the wire, if it’s like five days before the fifth, if on the last day of April you haven’t got a loan mod.

And see, here’s the trick. If they haven’t given you a loan mod offer, they will postpone it. And at Wells Fargo, I think it’s 15 days. So, here. I’m sorry, I’m jumping around but – so, back up from the trustee sale. Take 15 days. That would be about the 20th of April. On the 20th of April, they will allow you to request a postponement of that trustee sale if, in fact, they have not presented you with a loan mod offer. So, that’s your first fall back.

Then if you have in your hip pocket a short sale offer that is, you know, from a qualified bona fide buyer, that’s a real offer, if they do happen to give you a loan mod offer that you don’t want to accept, then you can postpone the trustee sale by slapping that short sale offer on them, you know, five says before the trustee sale date. And I guarantee to you, they will postpone it for a short sale offer that’s a good one.

Ryan Rockwood: All right.

Mike Rockwood: So, then, that gives you another 30 days.

Ryan Rockwood: Let’s go and see if anyone on the phone has any questions.

Mike Rockwood: Oh, you love the phones. Do you have some backup here of e-mails?

Ryan Rockwood: Hello and welcome. Does anyone on the call have any questions?

Mike Rockwood: There you go.

Ryan Rockwood: Go ahead if you’re on the call. Don’t be shy. Go ahead ask your questions. I know there’s a delay.

Ron: I’d like to thank you for doing this call.

Mike Rockwood: Hey.

Ryan Rockwood: Yes. Thanks a lot.

Mike Rockwood: Yes, thanks. Glad you appreciate it.

Ron: Hi, this is Ron. Can you hear me?

Ryan Rockwood: Yes, go ahead, Ron.

Ron: Hey, how are you doing? [Indiscernible].

Ryan Rockwood: Well, back up. Do you remember Ron’s private teleconference?

Mike Rockwood: Ron.

Ryan Rockwood: Okay, so Ron you’re going to have to fill us in out a few details

Ron: [Indiscernible].

Mike Rockwood: Okay. Yes.

Ron: [Indiscernible]. Should I make the payment?

Mike Rockwood: Here’s the deal, Ron.

Ron: What the procedure is?

Mike Rockwood: Yes, so here’s the deal. Now that you are 60 days late, even Bank of America would have bumped you out of their imminent default department. This is Chase. Okay.

Ron: Yes.

Mike Rockwood: Yes. So, you’re out of the imminent – you’re out of the grasp of the imminent default department, which is good because – and those guys, they just slow everything down. So, now that you are a real bona fide, edified price-winning homeowner in default, now you will be treated with respect and they will begin to actually pursue you to get this thing fixed. So, it doesn’t matter if you make another payment in terms of getting respect at the bank. It does matter in terms of your FICO score. Your score will continue to decline every time you miss one and it gets progressively more serious as it becomes a 90-day late as oppose to an another 30-day late. See what I mean? So, it will hurt your FICO score more.

So, it’s kind of – it’s got to very much has to be your call whether or not you make a payment. Now, if you’re completely committed to keeping this property, then what do you care if you make a payment because you’re really just paying a payment that you would have had to pay eventually anyway? Because they’re not going to let you off the hook on these arrears, they’re going to tack them on to the end of the loan.

Ryan Rockwood: But buy eventually, you mean in 30 years. So, I’d rat her pick maybe in 30 days than now, if you ask me.

Mike Rockwood: Yes. Ryan and I are both very biased to playing hard ball with the banks because they jerk so many people around. So, we’re biased toward telling people to really rough them up. But sometimes people don’t have the stomach for that. So, they just don’t want to do that to their FICO score and they don’t like to do that. So, it has to be your call. But you do get better treatment. You get expedited treatment if you are late, late, later.

Ron: So, I mean, would it – so right now at 60 – it was – but I haven’t paid the February payment so – but I do have the money set aside for that. So, if I make the payments, the February payment would be [indiscernible] would be the 5th of the March, maybe, why not 60-day late? Is that correct?

Mike Rockwood: Yes, that’s right. And you know, also, if you keep under 90 or 120 days late, you can probably avoid getting the notice of default.

Ron: You’re broken [phonetic]. I didn’t hear what you said.

Mike Rockwood: I say, a lot of times if you – I think if you are [phonetic] because you’re getting them – I think if you – another benefit of staying only 60 days late is you can avoid the notice of default and then – because once you get the notice of default, then you get a little bit more pressure from them in terms of the timing of the whole thing.

Ron: Okay, so that’s all for now. [Indiscernible] I have, so right now basically [indiscernible]. So I paid the 65 days still 60-day late, correct? It’s OK to do that?

Mike Rockwood: Yes.

Ron: Okay, good [indiscernible]. I want to be e-mailed [indiscernible] six weeks so you get it into my financial to submit the paperwork at it [phonetic].

Mike Rockwood: Okay, Ron.

Ron: Thank you so much for your help.

Mike Rockwood: Okay, you bet.

Ryan Rockwood: All right. All right, thanks Ron. And to recap because, you know, the audio on the conference line is very distorted for everyone else, Ron’s question was primarily about whether or not he should allow himself to go later or maintain his current lateness and start paying again and just, you know, pay behind, right? Okay.

Anyone else on the folk all have questions we can help with?

Male Speaker 1: Yes.

Ryan Rockwood: Yes, go ahead.

Male Speaker 1: I had a question about this debt-to-ratio.

Mike Rockwood: Okay.

Ryan Rockwood: Yes, go ahead.

Male Speaker 1: My debt-to-ratio was not coming out like how it is or when the CV [phonetic], the 78% is like higher than that. And I try to [indiscernible] some I remember as far as my monthly expenses, the basic ones. Now …

Ryan Rockwood: Okay, so your debt …

Male Speaker 1: I am …

Ryan Rockwood: Your debt – it sounds like the primary problem here is that your debt-to-income ratio is too high.

Mike Rockwood: Correct.

Ryan Rockwood: But already, I think I identify part of the problem. Your debt-to-income ratio does not include your expenses, okay. It’s debt only, and we’ll go through it right now. It’s a very good question. Lots of people have this question. And so by debt, debt for the sake of this conversation is anything that you already have that you haven’t paid for like a car, like an education.

Mike Rockwood: Right.

Ryan Rockwood: Like a home, you haven’t completely paid for it yet, okay?

Male Speaker 1: Oh, okay.

Mike Rockwood: And it’s on your credit report.

Male Speaker 1: Well, yes, I do have a couple of deals that I’m already paying [phonetic], like credit cards and stuff but …

Ryan Rockwood: Well credit cards are debt so that is included.

Mike Rockwood: So, why don’t you name your debts for us, you have your credit cards, what else?

Male Speaker 1: Credit cards, it was a lease on a vehicle, but I turned it back in but they still hit me with all these fees and stuff so it came out to like $8,000 or something. And then I think maybe one other debt that’s like $2,000 or $2,500. But originally, I was planning on trying to do the modification first and then take care all the credit cards and other debt later. So, I remember hearing you saying that you can, like, let them know that you can on negotiating what the credit cards, what people that I owe later after the modification.

Mike Rockwood: Yes. So, see, here’s the deal. If in fact you turned in that car, that lease, and you owe them $8,500 and you are not making monthly payments, then you don’t put that on your budget.

Male Speaker 1: Actually, I didn’t put any credit cards on that [indiscernible]. I just did the regular house expenses, gas, electric, and stuff like that.

Mike Rockwood: Okay. But see, for your ratios you really need to be clear because they’re going to send your file to an underwriter who is going to calculate all your payments.

Ryan Rockwood: So, do you think that, caller, do you think that you have made an error in calculating your DTI or that you think that your DTI is truly over 80%?

Male Speaker 1: I guess that would depend. I’ve calculated the same stuff that’s like put on the worksheet as far as the gas and electric, water, just the basic stuff like that. And I did the calculation the same way, you know [indiscernible] on the thing and it just came out real high. Basically, I’m on unemployment right now. I’m bringing in like maybe $2,000 or $2,100 from unemployment and my original mortgage was $1,640. But I’m in the repayment plan, so my payment now is like $2,500 and some change.

Mike Rockwood: Okay.

Male Speaker 1: And I’ve been paying on that to like over a year. And they’re still saying that I got to pay, like, oh you have until like August or something. And I just got a letter a couple of days ago saying that they just added in the new escrow so my payments won’t go up to $2,900. So, you know, the payment there was due for this – for this much as – this past – I think my payment was due on a 30th. I didn’t make the payment. I was like, there’s no need me trying to pay because it’s getting really crazy. So, I was planning on, you know, doing everything the way you all were saying, and I know not paying would put me back into the foreclosure status and I just want to do it that way and try to go from here.

Mike Rockwood: Okay, but tell me this. What is your – you have other household income beyond the $2,100 bucks, all right?

Male Speaker 1: Well, I’m in the union so it’s like I do planning on going back to work but also if I needed to show like me making other money, I do DJ on aside too.

Mike Rockwood: Okay.

Male Speaker 1: I guess you can look at that as under the table but I do have a business registered but I haven’t been claiming that I made anything so far.

Mike Rockwood: Yes, but see. If you have a mortgage payment – if just – if your mortgage payment to loan is almost $3,000, then you know you need to have at least $6,000 for your gross income or else you just won’t find a way to qualify. So, maybe loan modification just isn’t in the cards for you. Is the house so dear to you that you can’t let go of it? Is it a good investment or is it a long-time family house? Or maybe you should just get out from under it.

Male Speaker 1: No. I live alone. It’s my house. I had a couple of other houses but I had one other house but I let that one go because I couldn’t pay both mortgages.

Mike Rockwood: Well, how about …

Male Speaker 1: I, originally, was renting this house out and then I decided to keep because it was worst most out of the two.

Mike Rockwood: How much could you rent a comparable house for?

Male Speaker 1: What?

Mike Rockwood: How much could you rent a comparable house in your neighborhood for?

Male Speaker 1: Maybe like $1,500 for a single family house. I got a single-family, four-bedroom, two-full [phonetic]-bath house.

Ryan Rockwood: Well, you know what? We should do an – we you what we should do is for this caller, I don’t think you scheduled your 20-minute conference that comes with your kit, have you? I know I have talked you a couple of times, but we haven’t officially met yet, have we?

Male Speaker 1: Right. I didn’t do it.

Ryan Rockwood: So, do you on this – because, you know, we can help you force a loan mod but we always want to make sure that the loan mod is the best thing for you, right? So, let’s talk about this more in depth.

Male Speaker 1: Okay.

Ryan Rockwood: What I’d suggest is – are you looking at the website right now or are you just on your phone?

Male Speaker 1: I’m on the phone but I am linked in website.

Ryan Rockwood: Okay, on the website page that we’re doing today, it’s got a little button Schedule an Appointment.

Male Speaker 1: Yes, I’ve seen it. I’ve seen it.

Ryan Rockwood: Okay, check it out and don’t click it now or it will turn us off and, you know, you’ll disappear and everything but what the thing to do is to click on that Schedule an Appointment. If that doesn’t work, which it doesn’t at some times, you shoot us an e-mail at help@60minuteloanmodification.com.

Male Speaker 1: Yes.

Ryan Rockwood: And let’s just get together soon, like you know, suggest.

Male Speaker 1: Okay.

Ryan Rockwood: What I suggest is that, you know, what I’m trying to shoot for is like doing the meetings on Tuesdays, Thursdays and Sundays noon to 5:00.

Male Speaker 1: Okay.

Ryan Rockwood: So, suggest a time in there and we’ll meet and you can even e-mail us your documents that you’ve completed so far and we’ll zip through it and get you headed in the right direction. In that way, you know, you can have a couple of different escape pads [phonetic] and strategies mapped out, all right?

Male Speaker 1: Okay.

Mike Rockwood: All right. Thanks.

Ryan Rockwood: All right. Good talking to you.

Male Speaker 1: All right. Thank you.

Mike Rockwood: Hey, let me just keep – let me bank [phonetic] here some of these that e-mailed to us earlier right after you sent out an e-mail.

Ryan Rockwood: Okay.

Mike Rockwood: Okay, Tina wrote, “I heard you say that you recommend asking five times when you think you are getting wrong information. Well, then what? I still am being told that our application does not qualify for the Obama program and I think that it does.” Tina, I got to tell you that is not all that strange for you to have asked five times and still be told wrong information as bizarre as that sounds. And for those of you who don’t know what she’s talking about, here’s the deal.

In the book you see where I recommend that if you get wrong information because sometimes these loss mitigation officers just get it wrong. They’ve got wrong – they’re giving you the wrong information. They’re telling you something that’s not right. When that happens rather than challenge them or immediately ask for a supervisor, I always recommend that you call back even if you call back, you know, a half hour later because, you know, the call centers are big, you’re never going to get the same person and just get them – get another person to explain it to you. And I recommend you do that five times before you escalate it. Call the next day or something like that because if you think you’re right and, you know, one person just can’t figure it out, then just call back and get another person.

But then if you finally just think that, you know, this – I’m getting nowhere, then go ahead and escalate it. Ask them to have supervisor call you or ask them to have a supervisor get on the line. I sometimes don’t like asking a supervisor to get on the line because I personally believe that, in fact, they just play that role with each other and they say, “Hi, this is the supervisor. What can I tell you?” You know what I mean? They just hand it to the next agent.

So, “I’d like to have a supervisor call me back, please.” And then when they call me back, sometimes they do, sometimes they don’t but I keep asking until they do. Then you just call – you just verify with them. “Now, you’re a shift supervisor, right? And your name is …” And get all their information. They usually have an ID number that they’ll give you.

But honestly, I got to tell you it has happened to me where we have even gotten a supervisor on the phone and then they’ll look at it and they’ll say, you know, and this one case I’m thinking of. I do see that – why things are being – why you’re being told incorrect information. We then put your information incorrectly and it’s not including your taxes and your insurance on the house and the Homeowners Association in the mortgage payment for the Making Homes Affordable program because of the way we input the data when it first showed up.

So, it’s really bizarre but that can happen and when you’re right, you’re right, you just have to keep after it and you have to keep demanding it. And, honestly, the next step after escalating like that is a qualified written request. In fact, I recommend you shoot one off right away because that takes up to 20 days to get a response. But shoot off a qualified written request. That is just a fax letter that says to them, “I understand under section 6 of the Real Estate Settlement Procedures Act that I have a right called a Qualified Written Request. I’m hereby exercising that right. Please respond accordingly. Answer this question for me.” Then ask the question and say thank you. So, that’s what you should do right away, all right.

The Tim says, “My wife and I applied for a modification in January and still not gotten a response. We have not paid the bank any money since we sent it in since January and now I got called back to work. So my finances are different than when we apply. How should I handle that?” That’s a great question, Tim, and here’s what I always recommend to people when that happens during the loan mod process.

I recommend you don’t do a thing because you don’t know how long this could take. I mean, January, I’m sorry to tell you, isn’t all that old application. That’s just average. So, honesty, you just got out of – it didn’t say what bank it was but you just got out of the imminent default department last month. So, really, they just started working on your loan mod last month. And honestly, they’re not really pushing hard on the loan mods until it gets close to foreclosure.

So, if I were you I would just hang in there, let the package that you submitted percolate and let them ask you for the next bit of information but begin to run your numbers in terms of how well or if you will even qualify with your new income because when they ask you, then you’re going to have to report your new income and you want to be sure that you’re in control of how that goes. Do you see what I mean? So, begin to run your ratios, begin to do your figuring.

But see, you don’t know if they’re going to give you a loan mod next week. You don’t know if it’s going to be four months from now and you will have been laid off again. So, leave well enough alone.

Theresa says, “When my husband and I add our incomes, our home payment is only 25% of that. Does that mean that we will not be able to qualify?” Theresa, you are thinking correctly and thinking clearly. Here’s what I would recommend to you. First of all, are both of you on the loan? A lot of times husbands and wives think that they’re both on the loan but check real carefully to make sure when they send the statement, does it come to both names? That’s the first question. If only one of you is on the loan, then you can use just a portion of one of your income and then you could qualify. Secondly, I would ask you to check to be sure absolutely certain that you’re calculating your payment correctly its principal, interest, tax, insurance, homeowners association dues, private mortgage insurance, all that lumped together.

So, make sure you got both of the factors right. And make sure you’re calculating your income right. I can’t tell you how many people calculate their income wrong because they think I get paid – yes, I get paid twice a month. Well, then you get the paperwork and you realize they get paid every other week. That’s different. And they say, yes, I get paid about, you know, $1,400 every paycheck, so it must be below $1,400. Well, it turns out they net $1,400 and they have medical and 401k and taxes taken out of their checks. So, make sure you are calculating correctly as well, Theresa.

Ryan Rockwood: All right, we got to wrap it up.

Mike Rockwood: Ah, seriously? All right, so we didn’t get through it. We only got through about eight or nine of these. I’ll finish these up on Monday.

Ryan Rockwood: More negotiating tips, Tuesday.

Mike Rockwood: All right. Thanks everybody. Goodnight and please continue to pass on our information, tell people about this service as well as our short sale service nationwide, our loan modification kit that you buy at 60minuteloanmodification.com and, of course, these twice-weekly teleconferences. Thanks everybody. Goodnight.

Ryan Rockwood: Bye-bye.