The more engagement a lender has with their end customer, the greater the chance they stand to not only be called upon when a borrower needs to borrow again, but ultimately pinpoint opportunities for product recommendations.
And fees balloon if the borrower needs an extension, as many do.
Mortgage contracts contain clauses that stipulate that the borrower needs to maintain proper insurance.
The length of time a borrower needs can vary by location.
Countrywide uses multiple tools to evaluate borrower needs and reconcile them with investor guidelines in order to offer the borrower the most advantageous workout possible.
To make certain the lender is correctly crediting the payments, he said, a borrower needs an accurate amortization schedule that takes into account the extra payments.
Since the idea is to catch an incipient problem before it becomes a significant one, Mr. Sakole said, the borrower needs to notify the lender immediately.
As told through the story of a legally blind man in Ohio named Doug Wallace Jr., a borrower needs to convince a judge that his or her economic prospects are beyond hope.
"Since their introduction into the mortgage market in the early 1980's," he said, "ARM's have continued to evolve, adapting to inevitable changes in market conditions and subsequent borrower needs.
"Although there were supposed to have been prudent underwriting standards, it turned out that all the borrower needed was a heartbeat to get a loan," said Michael B. Carlinsky, a partner at Quinn Emanuel Urquhart Oliver & Hedges, which is representing MBIA.
