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.