5 Loan Modification Tips
In recent years millions of homeowners have faced the prospect of foreclosure. With foreclosure not only does the homeowner lose their home but the lender loses as well. One alternative to foreclosure is a loan modification. With a loan modification, the terms of the loan are changed to make the monthly payments more affordable for the struggling borrower. Here are five loan modification tips to help you through the process.
Tip #1 Call your lender and ask to speak to the loss mitigation department
If you find yourself falling behind on your mortgage payments you need to act quickly. Call your lender and ask for the loss mitigation department. They are the ones who handle loan modifications. Ask for a loan modification application and get the process started.
Tip #2 Hiring someone to help you with your loan modification request is not necessary
It is not necessary to pay a loan modification company to help you. You can deal directly with your lender and request a loan modification yourself if you are willing to do the upfront research to understand the process. You may want to have an attorney look over the loan modification offer before you agree to it.
Tip #3 If you do decide to hire a loan modification company check their credentials.
If you do decide you would like help with your loan modification request be sure to thoroughly research the loan modification company. Check to make sure that they have the proper license, contact the Better Business Bureau to see if there have been any complaints filed against them, ask for references, and find out what their experience is in handling loan modifications.
Tip #4 Have your house professionally appraised
All around the country home values have dropped. You should have your house professionally appraised and use that as a point of negotiation with your lender when seeking your loan modification, particularly if the value of your home as dropped.
Tip #5.Start with a low offer
Your initial proposal for a loan modification should be for a low rate of interest or low payment plan. You should anticipate that your lender will come back with a counter offer so you should start low. Before you can do this you will need to figure out what you can truly afford to pay each month and what the lender’s criteria are for a loan modification.
