Thursday, June 11, 2009

Loan Modification - Do it Yourself, Or Hire Someone?

Loan Modification Do it yourself, or hire someone? Great question. When considering whether to do it yourself or not, consider these items:

1. What are you going to ask for?
2. What is your hardship?
3. How will you document your income?
4. What have you already done to try to solve the problem?
5. Do you have all the documents ready to go?
6. Do you have the time, effort and energy to invest?
7. What is the compelling reason the bank should give you a modification?
8. Is a loan modification really the best option for you?

I don't know where this idea got started but many people think that a loan modification is just a matter of calling the bank and sending in some paperwork. This simply is just not true. You have to understand that the banks job is to collect what is owed. They are just not going to "roll over" and give you a reduction because you want it. It simply doesn't work that way.

The bank is not your friend. The bank is in the business of making money for the bank.

If you decide to hire someone to do it for you, this is what I suggest that you look for.

1. A company that has been around at least 1 year.
2. A company that is rated A by the Better Business Bureau
3. A company that has DOCUMENTED success stories, with your lender.
4. A company that has an Attorney ON STAFF (not remote)
5. A company that has some sort of refund policy.
6. A company that has the staff ON STAFF that will process/negotiate your file.

How long should it take?

If you are doing it yourself there is no answer to that question. Most people get the major run around for 3-6 months before deciding to do something else.

Many times a professional negotiator can put an immediate stop to the foreclosure process, buying time for a SERIOUS negotiation of the loan.

Typically it takes anywhere from 2-6 months to negotiate a successful loan modification. Sometimes faster, sometimes slower... Every case is different.


Most companies want their fees upfront. This is actually logical if you think about it. It is very similar to an attorney representing you in court. Does the attorney guarantee a certain outcome? Does the attorney want to get paid at the end or the beginning?

Another side of this coin is... For many people that are in serious financial hard ship... Would you work for them for free? Will a doctor do surgery for free? There is no compensation from the lender to the firm negotiating the loan modification. Remember this is not a refinance; this is a RENEGOTIATION of your existing loan.

Do it yourself or not?... Maybe both

Many consumers that attempt loan modification themselves end up worse off then they started. When the lender offers to take any arrears, and "roll it into the loan" this ends up making the payment bigger not smaller. These very same people end up in trouble again just a few months later.

Often times working with the bank directly (getting poor results or no results over a several month period) causes consumers to seek professional help and counseling.

Keith Jenkins is an small businessman as well as a real estate professional. He has over 30 years experience in marketing and Real Estate. For additional information on Loan Modifiction, please contact him directly.
Keith Jenkins
Better Life America
(888) 344-9333 x 132

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