More Loan Modification Details

So here's the deal... I am now being blasted by Loan Modification company's daily because they are so insistent on their "Huge Success Rate." I am currently interviewing Loan Modification company's on a national platform to refer agents to. I have found one Loan Modification company that I am close to endorsing based on a couple key features. First, I like that they are in the non profit sector. Second, I like that they do not charge an advanced fee to apply to their Loan Modification program. I also like their executive transparency, nobody seems to be hiding behind gate keepers. I have a national conference call tomorrow at 1:00 with this company. I will keep you posted. In the meantime, I wrote a manual on how homeowners can speak to lenders while seeking a Loan Modification. Please email me if you would like a copy of my "Guide to Negotiating a Settlement with your lender and Keeping Your Home." Here are a few passages:

What is a loan modification? To “negotiate” a loan modification means to talk to your lender and negotiate a more favorable payment plan. This usually means lowering your rate or extending the payment plan. There are several steps:

1. Realize that you cannot pay your current mortgage rates

2. Create a income vs. expense worksheet. Include your total income, your household expenses and then calculate how much you can reasonably afford per month to pay mortgage.

3. Write a “letter of hardship” explaining your current financial situation and why you need a loan modification. Lenders do not want you to file for bankruptcy and would rather give you a loan modification. Make sure to emphasize that you can pay off your mortgage if you are given a modification. This will increase your chances of success.

4. Contact the loan modification department of your lending company. Be patient and be nice. There brokers are your key to a modification.

5. Your broker will ask you for your income worksheet and your letter of hardship. Have those ready.

6. Now its negotiation time. Your broker will be working with the bank to see if you can get a modification. At this time, read our “loan modification negotiation tips”.

7. Once negotiations have ended the decision will be made. If you failed to secure a loan modification consider contact an attorney to help you negotiate. Qualified attorney have the legal power to aggressively make you a priority to your lender. Beware of unqualified attorneys or so called “loan modification” companies. These companies do not have any more knowledge than you do from reading this article.

Good luck! If you succeed then I can guarantee you that you that paying your mortgage will be a lesser burden.

-Christopher Rockey
rockey@mresolution.com