Due to the housing crisis, and the call for changes in some of the financing options for mortgages, the offices of mortgage lenders and servicers are receiving so many calls that there is not enough people to handle them. Plans are in the works to hire new personnel. The only option is to remain on the phone or contact them via website. You can also do the research to determine if you qualify beforehand.
If you meet all of the prerequisites that will approve you for the loan, then by all means beat the door down to get in touch with someone. If you are eligible, I suggest that you find your lender's/servicers' website and send an email and tell them you would like to apply. Perhaps an application is online, or make time to stay on the phone. A speaker phone always works when on hold for a long time. You could lay the handheld receiver down and occupy yourself to do something else, while keeping an ear tuned for the sounds of a representative whom is willing to help you.
According to the CNN News report (and I will provide the entire story at the end of the post) mortgage lenders and services will only convert ARMs that have not already been reset yet. If you have an ARM, and you are nearing a reset date, your application needs to be on file long before the reset takes place, to allow for processing disappointments or other set backs. But if your loan has already been reset then you are disqualified.
Also in order to qualify for the automatic conversion, servicers will only assist borrowers who are current in their payments and are occupying their homes.
Also mortgage servicers must follow the terms of their pool service agreements (PSAs) in making decisions to approve an automatic conversion of the loan. Currently, about 1% of Arms are being approved for a mortgage freeze. If you qualify, you could receive a freeze on your loan's iintroductory rate for 24 months or a fixed rate for the remainder of the loan.
But if you are behind because of the rate hike, in general it is not a sufficient reason for a change in the loan. You will need to have a very good reason such as losing your income or a medical crisis and proof that the payment can be made even with financial burdens, they may affect your ability to pay the loan. Essentially, the lender or servicer would not want to create another financial crisis by offering loans to people who are already in a financial crunch. So if you meet all of the pre-requirements. Get on the horn or use the website. For further reading of the mortgage freeze, visit:
http://money.cnn.com/2007/10/05/real_estate/fdic_rate_freeze/
http://money.cnn.com/2007/09/26/real_estate/few_loan_modifications/index.htm?postversion=2007092617