6 Tips for getting a loan modification - without getting Ripped Off!

With millions of people facing foreclosure on their homes and other properties, and the government seems powerless to improve the situation any time soon, it's no wonder that lenders and homeowners are looking for other solutions. All lost in a foreclosure. Not only does the lender and the homeowner, but the neighbors who watch their values ​​affected, cities that lose tax revenue, businesses lose customers, and so on. The best solution is to keep people in their homes. But at what cost to everyone else, and how do you do it quickly and painlessly? This is the point of loan modifications.

Loan modifications are not new, and have been since the beginning of the real estate financing. A loan modification is simply taking the existing agreement, and modifying the satisfaction of both parties. The loan modification can be anything under the sun - including changing the payment terms, interest rate, they lose some of the payments, moving to the back end of the loan, increasing the amount of the loan - or even get rid of some of the loan!
Loan modification companies have sprung up across the country, and homeowners facing foreclosure are particularly vulnerable to some of their high pressure tactics. If you are facing foreclosure, having a hard time making your payments or are upside down in the value of your home, a loan modification might be for you. Before you consider hiring someone to help you, though, here are some tips for dealing with the process of loan modification yourself:

1. Call your lender or servicer directly FIRST.

Many lenders now have departments and personnel to handle requests for loan modification. Some properties and borrowers have also been pre-approved for a loan modification request in advance! One such company to do this is government-controlled IndyMac Bank. Regardless of who is the creditor, call the number on your bank statement loan department and ask for the loan modification. If they say there is not one, ask for the loss mitigation department, and will guide you from there. The # 800 "customer service" department is trained to say "no", so do not be alarmed when they say they do not know what you're talking about, or do not do loan modifications. They definitely do!

2. Do not pay anyone in advance for the services of loan modification.

This is a process that can do yourself with a little 'time and effort. THERE is no need to hire someone to pose for a loan modification, even if at times you might want to consult your lawyer to be sure you understand the details of your loan modification. Most companies that claim to be loan modification specialists are out-of-work loan officers, or worse, and are not qualified to represent your interests. Some states like Colorado have recently passed legislation that prohibits unauthorized persons from performing loan modifications.

3. Make sure they are licensed.

If you end up working with a loan modification company or specialist, make sure they are licensed in your state. Although not required, this is a good idea to make sure you're getting someone who at least has some knowledge and experience in real estate and mortgage industry. Check their license with the state, we investigate their record with the Better Business Bureau and ask for references. It 's easy for someone to come with a fancy looking business card and smooth shapes the pretense of being a specialist in loan modifications and foreclosures.

4. Request an assessment.

Values ​​in many areas of the country decreased. You know, I know and especially the creditor knows. Before accepting a loan modification, they will want to know what the true current value of your property. Be prepared to get an assessment payment is made through a local expert license and certificate. Find one by contacting a local lender or checking an online directory. Even if it cost a couple hundred dollars, will be necessary and useful to negotiate with the lender. Try to find an expert who is FHA approved to ensure it is an assessment of quality that the lender will take seriously in evaluating your request for loan modification.

5. Threatening foreclosure or bankruptcy.

You should be ready to get serious. The lender wants as much as they can get their money, and they know that a loan modification means that they will be losing a bit '. You need to see what other options are worse. If you continue along the current path, and do not get a loan modification in place, you're probably looking at foreclosure. Under a foreclosure, the bank loses even more money. When talking about one of your other alternative is simply dragging a foreclosure for a year, can become much more interested in a loan modification agreement. Bankruptcy scare them so well! They know that not only lose money through a bankruptcy proceeding, but that Congress is ready to allow bankruptcy judges to do loan modifications anyway! It 's just much more convenient for them to approve a loan modification in advance and try that first.

6. Vai LOW.

Ask the sun and be grateful when you get the moon! When it comes to loan modifications, almost anything goes. There are certainly guidelines, especially when it comes to FHA, VA or other government loans, but you'll never get if you do not ask. When asked at a lower rate or a lower payment as part of the loan modification, vai low and think back with a counter offer. Need to take control and tell them what you can do, and then make sure you can live with the new terms. If you want them to lower the loan amount, ask for a reduction of $ 20,000, then gladly settle when they offer $ 15,000. If you start at $ 10,000, will never like you the hand of an additional $ 5000 for fun. When it comes to the terms of the loan modification, always start low in the initial request.

Loan modifications can be done very quickly and painlessly in terms of time and costs. A loan modification can save you thousands of dollars before and long term, and save the money lender or bank as well. But you only get one crack at the deal. Be realistic with your finances and what you can afford to pay. Be prepared to plead your case complete with collars salary (or filing for unemployment), bank statements, credit reports, copies of past due bills, medical receipts - everything that will support your case, you need help hours before it gets worse.

You can do it yourself, and do not need to pay someone thousands of dollars to execute a loan modification agreement. Before you start, the easier it will be and the more time you can spend to get the other problems in your financial world established. Loan modifications are common, so if you're in a pinch, do not be shy - pick up the phone and negotiate! ......