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How do I use a Qualified Written Request with my loan modification application?

Answer: A Qualified Written Request is a very important communication tool you must use with your loan servicer.

Under the “Real Estate Settlement Procedures Act,” Section 6, it specifies safeguards for consumers of loan services. Section 6 describes the QWR. It establishes a legally mandated communications protocol between us and our lenders.

The loan servicer cannot ignore your request. If it is written and you have proof that you submitted it to them, the law requires that the loan servicer responds to these inquiries within 20 days and tell you that they received it if that’s all they can tell you. And within 60 days they need to give you a full explanation and an answer to all your questions.

Loan modification expert, Mike Rockwood, and author of the loan modification workbook I recommend, explains how to use the QWR in a recent Q&A coaching session with his son and business partner.

Watch the video as Mike explains the importance of the QWR.

Following up the correct way will make all the difference in getting approved faster.

Also, after watching the video, there is more helpful information from Mike on using this critical tool in your efforts to get a loan modification.

The most effective ways to use the Qualified Written Request

You should be using “qualified written request” for formal requests for information that cannot be made by phone with a customer service rep at your lender. Here are examples of the most effective ways to use this tool:

  • To learn who actually owns your loan

The company that you’re sending your mortgage payments to is just a servicer. Very, very unlikely that the company you send your mortgage payment to is anything but a servicer. So if you really want to know who owns your loan, you need to send in a “qualified written request”.

In fact, they will not tell you over the phone. They’ll instruct you as to how to submit a “qualified written request” to get that information.

  • To request a modification of your mortgage loan terms
  • To ask for a copy of your promissory note
  • To ask for your payment history
  • To request an explanation of fees, or special charges that you incurred

Most fees, according to Mike, are bogus. You want an itemization and justification of the fees. Most times lenders will back down. Also, keep in mind, that many, many, many mortgage loans have RESPA/TILA violations. This can give you leverage to more aggressively negotiate.

  • To request special handling of reports

This would include items like credit bureau reporting regarding any payments that they are reporting as missed. If you want a formal explanation of how they are reporting a particular instance, or how many, or if you want to argue with them that they should not be reporting it as missed for whatever reason.

  • If you have any escrow related questions that the customer service team can’t answer over the phone

Your escrow account is impounded for your taxes and for your insurance. Most loans have escrow accounts and impounds. Most consumers find it pretty handy, and of course the banks love it because then they’re sure that your insurance and your taxes get paid.

  • To file a complaint and also to inquire why your modification is taking so long
  • When you do get your loan modification offer send in a “QWR” immediately asking for 3 things:
  • #1: Additional concessions

Mike says the first offer is always unacceptable, especially if you see that the “new payment” will still be a stretch for you to make or to challenge their fees. Mike recommends to never accept the first offer. It’s the minimum the lender wants to offer you.

  • #2: A list of all the fees that will be incurred in this modification, and an explanation
  • #3: Always ask that they not report all of your lates

Let’s say you went late four times during this modification. I always ask them to take two of those back because of their processing delays. And you know what, it happened. I just started doing it recently and I did get agreement. It seems to not be that big of a deal for you to ask them to reduce the numbers of reported lates.

FYI: It is okay to put all three questions in one QWR. Just make sure to number them 1 to 3.

Getting back lame answers from the loan servicer

You may get back a lame answer from the loan servicer in response to your QWR. All you do is immediately follow it up. “Not good enough. Not good enough.” Go right back to them. “Not good enough. The answer you provided was incomplete and inconclusive.” etc., etc. All you can do is start it over again.

Always end the “qualified written request” with that statement. “I understand that this is a qualified written request and my expectation is that you’ll respond to this within 20 days, and certainly with a complete response within 60 days as outlined in RESPA section 6.”

How to format your QWR

  • Write on the top of the paper, Qualified Written Request
  • You should put your name and it should be in the name of everybody on the loan.

Husband and wife, or if two non-married individuals are on the loan. Everybody on the loan should make the request.

  • Secondly, put the property address. That is the address that is collateral for the loan.
  • Third, put the date and then your question.
  • Get everybody on the loan to sign the QWR
  • Send the QWR by certified mail for proof of delivery

You need to be very specific in your QWR.

Mike likes to use numbers, and it’s really good if you can, use the term like “I suspect violations”.

Mike always uses “I suspect violations” if at all appropriate. Like “I suspect violations of the RESPA or of TILA in the processing of certain fees associated with my loan modification. Can you please give me a specific breakdown of all those fees and an explanation of why they were incurred?”

Remember, the mortgage servicer must acknowledge receipt of the QWR within twenty days, and respond to the complaints within sixty days. The loan servicer cannot ignore the written request. Noncompliance with the Act leaves the lender open to private lawsuits for three years after its inability to respond properly to the QWR.

Using the Qualified Written Request effectively, as outlined in this post, will help put your loan modification request on the fast track and ahead of the hundreds of thousands of other files the loan servicer is dealing with, who don’t know about these effective strategies. You have to play this game like a smart street fighter.

I have a special report for you called Your Blueprint To Avoid Loan Modification Hell. It’s full of strategies and tools to help you get approved for your loan modification – or even better – no mortgage at all. Click on the banner below for all the details.
free report to avoid loan modification hell
home loan modification, loan modification, mortgage loan modification, loan modification program, qualified written request, QWR, how to write the loan servicer, how to write to loss mitigation

Technorati Tags: home loan modification, loan modification, mortgage loan modification, loan modification program, qualified written request, QWR, how to write the loan servicer, how to write to loss mitigation

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6 Responses to How do I use a Qualified Written Request with my loan modification application?

  1. Gustavo Cuenca on 13/11/2010 at 11:41

    I bought the house in dec 2005;I’m in foreclosure with final judgement given 2 years ago;still in the house,no sale day.
    BofA sent me Loan Mod aplication.

    Can file a QWR “force” a better mod and stop coming sale day now ?

    I know there are lot of violations in my loan.

  2. Gail Simmons on 22/11/2010 at 15:39

    A QWR is an important tool to use along with two others I discuss in a new project I have been working on to help more homeowners from all my hours of research.
    It’s a free white paper report on giving homeowners a ‘battle plan’ and tools to use to negotiate with these greedy lenders or loan servicers that will put the power back in your hands. I may have it done before the holiday or shortly after. Be sure to bookmark my blog so you can check back when it’s available to download. /

  3. Frank Randazzo on 27/02/2011 at 05:41

    I purchased my home new in 2004 and refianced in 2006.Ive been in a loan mod for two years finally got denied through chase.Iam going to follow your steps to get a loam mod. but the forensic audit i have some questions I found my title papers from 2004 I never signed them or sent them in. also on the refiance in 2006 I cant find my loan docs but i found documents from raincross financial sevirces for details of transaction and assets and liabilities. That me and my wifes name were forged. should I ask Ticor Title for copies.Is this something that would be important

  4. Kelley Mata on 31/08/2011 at 20:02

    I have had major problems with Navy Federal Credit Union. To this day the neither the bank, the sellers nor the realtor will relinquish even so much as a copy of the mortgage contract. I have spent $$$$$$$$ sending certified mail only to receive answers that have nothing to do with my requests. I’ve even emailed the Chairman of the Board of Directors, BGEN Michael Wholley, at NASA and haven’t gotten any help. Our mortgage transaction was fraudulent PERIOD, even NFCU’s appraisal. After nearly 7 years an employee at NFCU said that the only way they’ll answer is with a QWR. Even with receiving certified mail it took NFCU MONTHS to even respond and it still wasn’t an appropriate response. Hope you have better luck than we are!

  5. Gail Simmons on 05/09/2011 at 11:10

    Always use a QWR. You want a paper trail and it is required by law that the lender respond. Remember, they may respond back using a stall tactic and not give you what you have asked for. Expect that. Your goal is to start building a legal case against them to put them in the legal hot seat so you are in a position of strength to negotiate or present your evidence in court to get the judge to rule in your favor.

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