Let me preface this particular log by saying that loan modifications are ABSOLUTELY REAL!! However, one should NEVER EVER, EVER.. EVER.. EVER, pay an upfront fee for a loan modification! I simply cannot stress this point enough!
I have witnessed, first hand, the sly and cunning behavior of so called loan modification companies that collect an upfront fee to supposedly work out a loan modification for a home owner. I can honestly say that I have never heard a happy ending story in any of these situations. In fact, I've recently dealt with one such company who repeatedly told a homeowner (who had paid them $2500), "not to worry" about their impending foreclosure date. They assured them that the bank was reviewing their file and that "the foreclosure has been postponed." When I became involved (after the home had foreclosed), it was discovered that this particular company had never even contacted the bank in regard to the loan. Of course, the company did a lot of smooth talking, and ferocious back peddling, and tried to lay blame on everyone else but themselves. The homeowner attempted to recover his funds, but to no avail. Unfortunately, stories just like this are very common!
Many banks nowadays will not deal with a third party when negotiating a loan modification. They will, however, deal directly with the homeowner. Better yet, the process is not that difficult. If you are interested in a loan modification simply call your lender and request one. They will likely send you to their default services department and initiate the request by sending you a modification package to fill out. This package consists of documents that outline your income and debts. If you meet their criteria, the bank will offer a loan modification. The modification can range from lowering payments by extending the term of the loan, to lowering the interest rate, or even deferring some payments. The bottom line, is that it does not cost you anything, except a little bit of time to work this out with your bank.
HUD approved housing counselors are available to discuss options by calling 1-888-995-HOPE. They will even provide assistance if you are having trouble dealing with your loan company.
For more information on the Making Home Affordable click HERE!
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