Attorney Negotiated Loan Modifications Vs Do It Yourself Loan Modifications
With so many homes being foreclosed on recently, with few signs of relief in sight, homeowners must educate themselves concerning the different ways they might be effective in keeping their homes by modifying their home loans.
There is a new government program, known as the Home Affordable Modification Program, which can help qualified applicants. If your mortgage was created before January 2, 2009, you may be eligible for this program.
Other requirements which will determine if you qualify include:
You are at risk of defaulting on your current loan
You are able to prove financial hardship
You currently live in the home (vacant properties don't qualify)
You have a variable rate mortgage
You have reduced your interest rate within the guidelines of the loan program
You can prove that a reduced payment will increase your cash flow
The total of your first mortgage balance is under $729,750our debt-to-income ratio is within certain amount
You must provide tax statements for the two most recent years, proof of income showing that you'll be able to afford to make the new mortgage payment, and a current bank statement and other associated paperwork to show the need for modification and the capability to pay it.
Whether you choose to apply for a loan modification yourself, or use an attorney, be aware that the procedure can take three months or even more. There are numerous rules and regulations to understand about; many homeowners decide to leave the loan application to an attorney who are able to wade through all the complicated, detailed rules and laws which need to be navigated. There are foreclosure attorneys who can also be effective advocates, since they are experts and can work with loan officers to get the best deal on behalf of the homeowner. Foreclosure attorneys often use their specific, detailed knowledge as leverage to help you get better terms and rates.
There are lots of ways to find a mortgage loan modification that works best for you. There are lots of loan modification companies offering help for homeowners, but check to make sure that you are dealing with a reputable company. Check with the Better Business Bureau and ask previous clients regarding their experiences if you are able to, so you get the best help possible. Never pay an upfront fee for mortgage loan modification services, except for an attorney retainer fee. In addition, remember that no legitimate loan company would promise to get your home loan modified. Only banks can make such promises.