Should You Modify Your Own Loan?

There is no simple answer to this question, but generally someone who is a good candidate for modifying his or her own loan is perseverant and does not take “no” for an answer.

It’s not necessarily easy modifying your loan — although it’s getting easier. In some cases, it may be relatively painless, but sometimes a professional can secure much better terms for you.

If you do decide to do it on your own, use programs such as Easy Loan Modification so you at least have the tools at your disposal to obtain the loan modification you’re entitled to.

Now, if You hire a pro, make sure you get a good one! There are a lot of bad ones out there that are just trying to make a buck on people who are in a very vulnerable situation. A professional may be able to help you secure a much better deal in a quicker timeframe than you could on your own due to experience and special relationships.

If you do seek a professional help, it does not necessarily need to be an attorney, unless perhaps you were a victim of shady lending practices or predatory lending. Again you want to ensure the attorney has a clean record and is experienced.

UPDATE: If you’re in California, make sure you know about SB 94, passed October 2009, which prohibits companies for charging upfront fees.

Loan Modification Do-It-Yourself (Loan Mod D.I.Y.)

Loan Modification Do-It-Yourself (Loan Mod D.I.Y.)

Loan Mod D.I.Y. was created as an inexpensive solution for homeowners who can easily qualify for a loan modification and are prepared to do most of the work on their own.

Benefits:

• Least expensive solution
• No software download required
• Saves time by simplifying calculations and creating hardship letter

For more information, visit our Easy Loan Modification Web site.

Professional Loan Modification Services

Professional Loan Modification Program

This program helps homeowners who may have a financial hardship but could afford their mortgage with a loan modification. We refer clients to a trusted organization specializing in loan modification.

Benefits:

• Most loan types qualify
• Performance Based; if you don’t get an approval, you don’t pay
• Available in Most States

Note: This program is usually the best option for homeowners that have a more complicated scenario, such as multiple properties, foreclosure, self-employed, or feel as if they were misrepresented; however, it’s not for homeowners who have very little or no income and would not be able to qualify for a loan modification.

H.E.L.P. Program

H.E.L.P. Program (Homeowner Education = Lender Performance)

The H.E.L.P program assist homeowners who may not have an enforceable Mortgage.

A significant percentage of Mortgages originated during the mortgage boom were either in violation of federal and/or state fair lending laws or were written in a way that  makes them not enforceable. A third party auditing company will audit your Mortgage to unconver these issues.  If violations are found the next step would be to go through the courts or begin discussions, negotiations and/or litigation with an attorney, your Mortgage Holder and/or Lender.

Benefits:

• Shifts the power from the lender to the borrower
• Provides the information that an attorney would require to take on such a case
• Allows you to exercise your rights as a consumer and borrower against the lender
• May benefit homeowners that owe more than property is worth

Note: The potential benefits of this program are significant, but the process can be lengthy, so it’s not necessarily suited for someone who wants a quick fix.