Is it better for me to pay a special loan modification company to handle the loan modification from my existing lender or should I just try to work with my lender on a loan modification?
I have a 3o year fixed rate at 7%. I used to have good credit but ruined it. Will I qualify for a modification of my loan…I cannot afford what I am paying now. Due to the housing market I pulled money out of the equity I had in my house and I refinanced. But now my house is not worth what it was in the past and I owe more money than what my house is worth. I was told that only option arms qualify for loan modifications is this true?
Hi Fullhouse,
Well the honest truth is that you can modify your own loan with your current lender. But do you really want to? A loan modification company consisting of professionals in real estate, law and banking negotiating on your behalf doesn’t hurt either. Just make sure the fee is reasonable and that they actually provide a service for your money.
As to whether or not you would be a good candidate for a loan mod, I could provide you with a free pre-qualification. Your credit score does not play a role in modifying your loan. ARMs are not the only qualifying factors, there are many others. If your term was extended to 40yrs and the APR lowered to let’s say 4%, would that payment be easier for you?
I hope this post helps you out. Good luck!
“The average American trying to negotiate a loan modification will not be able to get it done,” said Waters. “It will be impossible for them to get in touch with the right person, and even if they get in touch with a so-called counselor, they have a cookie cutter kind of direction that they go in.”
watch the video!
- Congresswoman Rep. Maxine Waters Dials and Redials and cannot get through…
What if your area was particularly hard hit?
Can you get your loan modified if you owe more than your house is worth?
If so, what’s the cutoff? $10K more? $25k more? $50k more?
Fullhouse, are you behind in payments yet? You’ll need to be at least two before the bank considers you a “problem”.The other posts are right. The average home owner will NOT get a modification because they will not know how to negotiate with a lender or talk to the right person or department.
The lender is there to protect their arse, not yours. Sounds weird I know and common sense would dictate that they would WANT to work with you. Not the case.
Doing a modification is a financial transaction that on the surface is easy and simple, however it can go bad real quick! If you are not in a position of knowledge and leverage to deal with it, YOU WILL LOSE YOUR HOUSE!
Don’t believe me? Why are we having all these foreclosures? Yes some people have situations that can’t be helped(job loss,etc.) but a good majority if given a modification could have saved their home.
Also remember who is the other person at the end of the phone line. Banks/lenders have never experienced this before and are pulling people who one day were doing clerical work in some other department and now they are a “modification rep”, or some other title.
If you need more advice let me know.
Remember the the biggest reasons that people will lose their home is because they are too proud to get help and think their bank will “save” them.
You know what we call those people now?Renters!
good luck.
Neg:
Yes, even if you owe more than the house is worth, we are negotiating principal balance reduction.
If you are choosing a company make sure they are attorney owned, or have an attorney on staff. Also either dont pay up front, or make sure they have a money back guarantee.
A good one will get better terms than you would get yourself.