How to Choose The Best Loan Modification Program

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By Alden Witte
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Choose The Best Loan Modification Program

Trying to pick the best way to do a loan modification--while even the mortgage companies are still ironing out all the details--can be a little daunting. There are many programs out there that say "you can do it yourself!" I suggest looking elsewhere. The reason is that on average, a really good loan modification lawyer can negotiate a mortgage between 35%-55% lower, get next two months of payment forgiven, and even substantiality lower the principle. I know that sounds unreal. Do not believe me, check it out for yourself.

Difficulty: Easy

Instructions

Step 1

Ask yourself these questions when considering a do-it-yourself package.
Would you represent yourself in a court of law?
Do you know what qualification formula the banks are looking for in your financial statement?
Do you know what to say in a hardship letter?
Can the home course get you to negotiate 2 months of no payments on your loan modification?
The answer to all four questions is probably no.
An experience lawyer/negoitiator will. The first step is to use a lawyer or group of lawyers that specialize in loan modification.
Step 2

Don't get sold on a seemingly inexpensive do it yourself course. You might find out it's not so easy, and you end up paying much more for their 'expert' help.
Make sure the company has dedicated negotiation attorneys in house, as opposed to lawyers on retainer.
Step 3

Get their written guarantee. If they can't at least guarantee a payment of at least 10% lower, find someone who will.

Tips & Warnings

The current economic climate and the government's recent stimulus package is the perfect storm for getting the best deals ever concerning loan modifications.
Any type of loan can be modified.
You don't need to be behind on your mortgage payments to qualify for a loan modification. Let an experienced negotiator or representative show you what they can do.
If you are several payments behind, it's not too late to save your home. As long as you have at least 3 weeks before a foreclosure auction, they can help.
Six months ago, realtors or mortgage brokers did not know what loan modification was - let alone how to help you. Stick with your assigned in-house attorney.

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