Ever get stuck when dealing with automatic phone systems so commonly used by many financial institutions? Most of us want to speak to a live agent, but navigating through the menu of options can be time-consuming. Even more challenging is when you finally speak to a live agent, you don’t have the necessary information at your fingertips. That’s a common scenario for all of us, and even more of a reality for families in forbearance relief offered through the CARES Act. Before you press one for frustration, we have some tips for smoothing the process when you call to talk to your mortgage servicer.
You’re Not Alone
Before you consider the tips below, remember you might find it helpful to reach out directly to the Homeowner’s HOPE™ Hotline: 888-995-HOPE(4673). Our counselors have helped thousands of people in similar circumstances identify and weigh their options, and we can help you, too.
What is a Mortgage Servicer?
To get on solid footing, let’s start by understanding what a loan servicer is. While your mortgage lender is the financial institution that originally loaned you the mortgage, it is the mortgage servicer that you communicate with about your payments and day-to-day tasks. More often than not, the loan servicer is not the same company that originally gave you your loan. To further help figure it all out, see the definition of Loan Servicer via 995Hope’s Mortgage Terminology Glossary.
Get a Conversation Going with These 5 Tips:
As changes to forbearance plans approach, it can reduce stress to reach out to your loan servicer to understand your specific situation. The earlier you reach out, the more options there are for help and you will be armed with next steps to move you in a positive direction. Noted here are five tips to help you feel more confident when you reach out to your mortgage company:
1. Know Who to Call
It’s important to talk to the right people in the right department. There is a difference between a customer service or collections department and a loss mitigation or home retention department. To get the help you might need, always ask to speak to a loss mitigation or home retention representative. Once you reach out, most companies will assign your file to an account manager or customer relationship manager. This dedicated representative will be your main point of contact while working on the best solution for you.
2. Be Prepared
You’ll need to be organized so your loan servicer can better understand where you are and determine your eligibility for a workout option. It is helpful to have on hand your most recent mortgage statement, pay slips or other documents showing your household’s monthly pre-tax income, account balances, and your most recent tax return.
3. Know the Language
Clearly understanding the financial terms you will be discussing is essential. 995Hope provides a comprehensive glossary of terms to help with your conversation. You might want to keep the list handy during your conversation to gain clarity and confidence during your discussion.
4. Know your Options
If you’re already in forbearance, these may include a deferment, modification, reinstatement or repayment plan. If you haven’t yet taken action, this might be if your loan is Eligible for the CARES act forbearance or other offered interventions. Reviewing these options before your call can be helpful. Once you have a sense of what your options might be, contact your loan servicer to discuss which best fits your needs. You do not have to make a decision on the spot. Knowing all the available options can greatly lessen your stress and help you make a positive decision.
5. Track the Conversation
Keep it professional and polite – determining the best course of action takes thoughtfulness, clarity and clearly understanding your options. To keep you on track, be sure to maintain a record of all your communications with your loan servicer. Consider creating a document to log conversations, action items and other important information.
Let’s Connect
Now that you understand the tips to contact your servicer, remember it can be easier to contact us first. We can provide important resources, information and our knowledgeable staff can help you make the best decisions for you and your family. 995Hope counselors have helped thousands of people in similar circumstances identify and weigh their options, and we can help you, too. Contact the Homeowner’s HOPE™ Hotline at 888-995-HOPE(4673)
Ever feel like you’re stuck in a never-ending loop when dealing with automated phone messaging? When you want to connect with someone at your financial organization, navigating the menu of options can be time-consuming and frustrating.
Adding to the challenge is not having the necessary information or documentation on hand–or failing to understand the jargon-heavy terminology–when you finally do speak to a real person.
To curb your conversational woes, we offer strategies for when you speak to your mortgage servicer. But first: let’s briefly define who’s who.
Mortgage Lender:
- A mortgage lender is a financial institution or individual that provides you with the funds to purchase a home or refinance an existing mortgage.
- They are typically involved in the origination of the mortgage, which includes evaluating your creditworthiness, processing the loan application, and ultimately approving or denying the loan.
- After approval, the lender provides the funds for the purchase or refinance, and you enter into a mortgage agreement with them.
Mortgage Servicer:
- A mortgage servicer is a company that manages the day-to-day tasks related to your mortgage after it has been originated by the lender.
- They handle various aspects of the mortgage, such as collecting monthly mortgage payments, managing escrow accounts for property taxes and insurance, and providing customer service for mortgage-related inquiries.
- Mortgage servicers also ensure that your payments are properly credited and may handle the transfer of your mortgage to another servicer, if necessary.
Conversational Best Practices
Reaching out to your mortgage servicer to understand your specific situation can bring clarity on next steps and help reduce stress around decision making. Here are several tips to help you feel more confident when you reach out:
- Know Who to Call: There are distinctions between a customer service or collections department and a loss mitigation or home retention department. To expedite communication, you can ask to speak to a loss mitigation or home retention representative. Once you start the conversation, most companies will assign your file to an account manager. This dedicated representative will be your main point of contact while working on the best solution for you.
- Gather Documentation: You’ll need to be organized so your loan servicer can better understand where you are and determine various program eligibility. It is helpful to have on hand your most recent mortgage statement, pay slips, or other documents showing your household’s monthly pre-tax income, account balances, and your most recent tax return.
- Familiarize Yourself with Terms: Reading up on the financial terms you might hear during the call can be helpful. 995Hope provides a comprehensive glossary of mortgage terms that you may find useful: Mortgage Terminology Glossary.
- Understand your Options: If you’re already in forbearance, your options might include a deferment, modification, reinstatement or repayment plan. Considering these pathways before your call can be helpful when it comes to feeling more confident on next steps. Your servicer will discuss what best fits your needs and provide the fine print.
- Track the Conversation: Keep it professional and polite – determining the best course of action takes thoughtfulness, clarity, and clearly understanding your options. To keep you on track, be sure to maintain a record of all your communications with your loan servicer. Consider creating a document to log conversations, action items and other important information.
You’re Not Alone.
Need additional tips and guidance? Don’t hesitate to reach out to us at 995Hope. Our empathetic and HUD-certified staff are prepared to help you identify and weigh your options, and we offer resources to ensure you stay on track with your specific housing needs.
