Home Loan Modification
Currently Loan modifications are an interesting thing & there are currently many programs you may qualify for if you have a specialist giving you the assistance to help you get qualified correctly. When you find yourself in a difficult financial situation, most lenders tell you either verbally or in writing that you might be able to modify your home loan to help you lower your monthly payments. So what do you do, naturally you deal with the customer service from your lender for weeks or even months and it seems like you get nowhere at all or they offer to modify your loan for a very short time or with terms that just really don’t make sense at all for your financial situation and needs of wanting to modify your home loan. But they (the customer service rep) are saying that this is the best they can offer. Now is the loan modification program that your lender offers you truly your best options and deal?
Currently as the market continues to shift downward, the lenders become more willing and flexible with home loan modifications as the pressures of more foreclosures pile up the pipeline at the banks and legislation is passed to minimize the effects of foreclosure on the economy.
Now why are the lenders so difficult for YOU to deal with as a homeowner you ask? Why won’t they just cut to the bottom line and give you the best option available for you to stay in your home and make an affordable monthly payment to them.
The lenders job is to lose as little of money as possible so if they can get you to agree to terms that are in their favor, they stay ahead. Also, as an individual consumer, it is unlikely that you even know what your modification options are and how you can qualify for the most beneficial loan modification. If you don’t ask, they won’t tell. That’s why you need a professional negotiator working for you on your behalf to make sure your home loan modification is the best possible with your lender.
Who is the Best Candidate for the Loan Modification?
First off if you want to keep your home then you’re a candidate.
Do you want to keep your home?
But a loan modification in my opinion is a home owners best option if you would like to save your home.
You’re asking why can’t I just call the bank myself and the answer is absolutely yes you can. But the denial rate for people who try and work things out directly with the bank is very high. In some cases I heard according to Congress it was in the 80% range for the same reasons I mentioned earlier. When you have a professional negotiate for you, they know more about the options available and the guidelines and they are working for YOUR best interest not the banks and they will get you the best loan modification possible through your lender.
The whys of loan modifications.
Home Owners Benefits:
Payments are more affordable for you.
Terms are changed towards your benefits or ability to pay
(example would be to change interest rate reduced principal balance)
Saves your home from foreclosure
Faster, easier, and simpler process
Can be more affordable and a lot less expensive than a refinance
Lender Benefits:
They Will still have you making mortgage payments and therefore still profiting from you as the home owner.
Cut back on costs involved when property is foreclosed.
Have less delinquencies or mortgage defaults in their portfolio.
Benefits of a specialist helping you with your loan modification vs. Trying to do it on your own:
You have one chance to do it right. Therefore, having a specialist take care of it will save time and money.
The specialist has the negotiating skills and know what will be asked by the lender and how to answer those questions to benefit YOU the most.
The specialist can expedite the loan modification based on their knowledge and expertise on how to streamline the process.
Frustration is taken from you when something as serious as possibly losing your home to foreclosure is handled by a specialist.
We have laid out the good reasons that the first step anyone who is interested in keeping their home should do a Loan Modification. Now it is in your hands as the home owner to make the decision to call for a specialist to help get you qualified for a beneficial home loan modification program through your lender.
