Are You Still Having Problems Getting A Loan Modification?

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The economy is still in the dirt, and hard working Americans are seeing the American Dream slip through their fingers. If you are one of the millions of homeowners trying to hold on to their houses, and get a loan modification, do not give up. Keep fighting! There are a few steps you should take.

Keep making those mortgage payments.

Many people believe that they have to be behind 4 or 5 months before the lender would consider modifying their loans. Some even think that the further behind they get the better their chances of getting the deal done. They are all wrong. Never give the lender the opportunity to foreclose on you. If you stop paying, they have every right to foreclose. Talk to your lender and complete the paperwork for the loan modification. Meanwhile, pay what you can. If your mortgage payment is $800 a month, and you have $500, pay the $500 and attach a note. Explain that you know that you are $300 short but that you are doing your best. Make copies of every note you send the lender.

HAMP is not your only option.

Our Federal Government sponsors HAMP. This should be your first shot at a loan modification. The rules are stringent, but the rates are good. If you fail to qualify for a loan through HAMP, ask your lender to give you a loan modification directly. The inhouse deals are quicker to close but you will pay a premium in the interest rate.

You don't have to pay a fee for a loan modification.

Beware of scam artists. Desperate homeowners sometimes will try anything to save their homes. The crooks know this and prey on vulnerable borrowers. The promise results. They brag about their contacts at the banks. Nothing is further from the truth. No one can guarantee that your loan modification will be approved. And certainly no one can tell you in advance what the interest rate will be or what the new monthly mortgage payment will be. The scam artists will try and get some money upfront. After you pay, you will never hear from them again. Your calls will not be returned. In many cases, the crooks have left town and will surface in a different city.

If you need help with a loan modification call a HUD approved housing counselors. They will work for you and the service is free.

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