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Loan modifications have become a very
common topic these days. With the turmoil in the real estate
markets, many homeowners are looking to their existing lenders for a
loan modification. With many properties underwater (you owe more
than the home is worth), refinancing is often not an option.
With the surge in the need for loan
modifications, there has also been a surge in loan modification
companies. These companies will work on your behalf to modify your
loan, usually for a fee collected upfront of anywhere between $1,000 and
$3,500 or more.
While some situations do dictate the
need for a loan modification company, usually an attorney based loan
modification company, more often than not homeowners can work with their
lender directly to obtain a loan modification. With proper
information and diligence, along with not being afraid to make phone
calls to your lender on a regular basis, it can make sense to look into
trying to modify your loan yourself.
For a great all
inclusive package that will walk you through the loan modification
process from A to Z, take a look here.
They have been doing loan modifications for years, even before this
current downturn, and offer a wealth of information to help you go at it
yourself.
In a nutshell, the
process you need to go through involves contacting your lender,
supplying them with paperwork and a hardship letter, and then calling
them on a regular basis to follow up on your file. If you are in
foreclosure or behind on your payments, you should contact your lender
right away. If you ignore the problem, it will not go away, and
they will not modify your loan. You must contact them and ask for
a loan modification.
Feel free to contact me
directly for more information, or to explore your financing options.
If you owe less than your home is worth, you may have options to
refinance out of your existing loan rather than trying to do a loan
modification.
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