Don’t Pay Thousands For A Loan Modification
You can stop foreclosure with loan modification. I think most of us know this by now.
But how does one restructure their mortgage? How are homeowners suppose to lower their mortgage payment with a loan modification.
Should a homeowner hire a third party to modify their home loan?
There has been a remarkable number of homeowners who have been ripped off by so-called loan modification companies. These for profit outfits have sprouted up every where. They charge homeowners 1500-7000 dollars for results that any monkey pushing buttons can achieve.
It is extremely hard for homeowners or anybody for that matter to tell which modification services are legitimate and which are bogus. This can present a real headache. Where are Homeowners suppose to turn for help obtaining a loan modification?
It is likely that some of the small attorney offices locally are a good place to check but don’t just head down to the first one you see. It would be wise to only check with the ones you have heard first hand does good work. Another downside to this route is the cost. These guys are generally the ones charging between 5000-7000 dollars. They are used to making that kind of money and they have invested in the education needed to be a lawyer.
Now having said that if your situation is one in which you hold a mortgage of 750 to 800 thousand or more than you may want to hire a local attorney to work on the modification for you but you need to be sure that you are talking to the actual attorney and you should expect to pay at least 5,000 and most likely more.
However this is not a likely scenario most of us have a much smaller mortgage. The best thing to do first is to check in with a local housing counselor.
There is a great article on the Home Affordable Modification Program called Choose Affordable Mortgage Modification which highlights the benefits or reasons that homeowners should initially focus their efforts towards the Obama loan modification program which offers homeowner a streamlined mortgage solution through modification.