People started looking for Loan Modifications as early as 2007. Back then, banks weren’t likely to grant them. They preferred to try to wait out the recession without taking the loss. As the foreclosures started to mount up, they soon realized that it was better to take a small loss than a large one. For the most part, they have decided to stall. Prior to this decade, no one had really ever set out to modify hundreds of thousands of loans.
In the beginning, shady con-artists tried to take advantage of the situation. There were no specific rules to follow and many people lined up to take advantage of the situation. This was quickly remedied. Most states passed laws and some now have licensing agreements.
There are many people like you who have managed to hang on but are slowly drowning a painful financial death. In many cases you would have been better to just walk away from the house when you first started getting in trouble. You would have had a year to two to reestablish your credit Best Broker In Canberra.
On the other hand, you may have waited just long enough. The system is now set up and running. Loan modifications are being approved in greater and greater numbers. The banks have established clear-cut guidelines of the steps needed to get a home loan modification approved. Follow the steps and you have a good chance of reducing your home loan payments for at least five years and maybe for the entire remaining term of your mortgage.
If you know what to say and do.
Should you even waste your time? If you don’t meet some basic minimum qualifications the answer is no. You can talk to a mortgage modification specialist free of charge. The initial consultation won’t cost you anything. They don’t want to work for free. If there is no chance you’ll be approved, most wont take your money. The industry is regulated now and if their denied ratio is too high, they start looking like scam artists. Ask them their success ratio to gauge their honesty.
If they tell you that you have a good chance of getting approved, you have a decision to make. Do you want to continue with them or do you want to go it alone. Nobody works for free so expect some type of retainer fee. On the positive side, they already know the steps that must be completed and the way the forms should be filled out.
Your other choice is to try to get your home loan modification on your own. This is much riskier since you don’t know the rules. On the other hand, no one cares more about saving your home than you. You will probably be more attentive and less things will fall through the cracks if you remain vigilant.
If you should decide to follow this route, get an education. Find a good loan modification course before you get started. Go through it from start to finish several times. Each time you may pick up something different. When you feel comfortable, and only when you feel comfortable, start the process.