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An Important  Guide to the Loan Modification Process.

The truth about loans modification is that you can get the same results as opposed to hiring a broker , but you will need a lot of tenacity, thick skin, patience, time and an education of the process. If you are not experienced as a professional negotiator, you may not want to do this yourself.

However the point is that you can do it yourself if you really want to. The banks do not charge you for this, however most companies use third party negotiators, because that can benefit from that extra pull, and that experience with working with the lenders. This is really why you would use a third party negotiator, however there are some big differences between the companies out there and this is what a part of this article will touch upon.

loan modification process

The first thing you need to understand about loan modifications, is that you will never qualify if your loan application is not done correctly. The application is the most important part of the process.  The information that you provide will determine whether you are approved or declined based off of the information you provide in the initial application.

One of the first things you have to do is prove that you will be able to make your future payments in order to be approved. Lenders will only consider loan modifications if they think that it will avoid a foreclosure, as this is the sole purpose of a loan modification in the first place. Nobody wants to see you lose your home, yet you must be able to prove on paper your ability to make your payments.

Many times the lender will contact you directly if the application is approved. This is one of the main  reasons why you should never pay upfront fees for a loan modification, because a lot of times the very first initial step, such as getting guidance through the application and submittig it correctly, can in many cases be sufficient to get a good loan modification result.

There are some good non-for profit organizations such as www.helpUmodify.org that can help you with the process with no upfront charges to put together your application and to get you to the point if you can see if you have any options. If you do get it on the first offer, then you can get away with almost no cost and relatively little effort on your part.

One thing to remember is that results are never guaranteed, every single lender is different. For example, If you ever hear a commercial, or an advertisement in where a loan modification company is stating that they guarantee results, beware, because that is totally false information, it is simply not the truth and you should stay away from them. There are no guaranteed results when applying for a loan modification.

Another thing to note is that most loan modification lenders will only allow 1 loan modification per 12 month period. If you had a particularly bad loan modification that is now hurting you or possibly an application that wasn’t submitted properly, then you could also contact a non for profit organization that helps people find solutions to prevent foreclosure.  The main message here is that if you have already had a loan modification done in the past twelve months, you do not want to pay any upfront fees for another one, unless it is over the 12 month period.

One last thing is to beware of the many sub-prime predatory lenders out there, that modify loans just for the money. These are the same companies that wrote all of those bad loans in which has contributed to the housing crisis as we know it today.  We are talking about the companies that have offered for example, the adjustables, the no income, and the 1 percent type of loans, and they are going through their data bases contacting all their clients who are now suffering and trying to get them to pay upfront fees to re negotiate their loans.

Remember don’t you ever, under any circumstances pay upfront fees for a loan modifiaction. If you are approached by such a lender, in most cases its the sub prime predatory companies that you will be dealing with. So stay away from these companies as they will hurt you more than help you.

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