Negotiating In Good Faith
Most investors do not know that some loans require the lender to negotiate with the borrower in 'good faith' for a mortgage modification and repayment plan. Many government backed loans include this as a requirement when they underwrite the loan.
Unfortunately loss mitigators have learned they can run over most investors by acting as if they know everything, pushing around their rules, and telling investors it is the lender's way or the highway.
What you don't know is that the lenders train their staff to avoid certain situations and from doing certain things. Here's one way to get the lender to negotiate in good faith. Your conversation could go like this...
"Is this call being recorded?"
"Great. I just wanted to ask you a question on the record is that OK?"
"I hold the Power of Attorney for Mr. Smith and it was my understanding that you had a legal obligation to NEGOTIATE WITH THE BORROWER IN GOOD FAITH for a mortgage modification, repayment plan or short sale. Is this true?"
(by the way we slipped in short sale into negotiating in good faith)
"Well, I've been trying to negotiate in good faith with you and to date I have not had a written response or counter offer to the short sale package I've submitted. I've done my part and I was hoping you could negotiate with me in good faith."
Please understand this approach is not going to make friends or build brownie points with the lender. But if you are up against a lender that is not responsive you have to get aggressive. I guarantee this will get their attention.
Note: All lenders record the conversations and you can use this to your advantage in hard line negations. Again, I prefer nice negotiations but will use whatever tools are available to complete the job at hand.