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Getting a Loan Modification

I need to get a loan modification, but am afraid of getting ripped off. Does anyone know of a loan modification company that is honest? Thank you.

By packlestax from Dayton, OH

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July 22, 20090 found this helpful

What is it you need modified? Look on website of Fannie Mae, and see if they have information. Call your local bank or credit union and see if they can advise you even if they aren't the one. Google for "bad loan modification companies".

Call your local government. Ask at your library. Those people have no ax to grind and aren't out to steal your money or cheat you. May be a little slower, but their conscience is where it's supposed to be.

Google Keep your house and modify your loan government programs, and make sure the site says,

.gov and there should be some info for you.

A lot of people are putting that kind of info out.

I for one am very angry at ads saying "in your case we recommend a 30 year fixed mortgage"...that was what they were supposed to recommend in the first place.

Check out Suze Orman's website. I'll be she has something.

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July 22, 20090 found this helpful

PIKKA gave you some good advise. If you want a loan modified go to the company that gave you the loan in the first place not a third party.

Loan Modifications

What is a Loan Modification?

By Justin Pritchard, About.com

See More About:loan modificationforeclosurescredit scores

Loan Modifications are changes to your loan agreement. Your payments get more affordable, and you dont have to default on your loan. Banks choose to offer loan modification programs because it is easier to work with you than to go after you.

Why do Banks Offer Loan Modification?

If you stop making payments, the bank has several options.

Attempt to repossess property (a home foreclosure)

Attempt to collect, or hire somebody to do so

Give up hope and accept the loss

Watch you declare bankruptcy and receive little or nothing

None of these options are attractive to you or the bank. Your credit will suffer, and theres a financial cost to the bank.

What is Credit?

Is there another option? Yes - banks offer loan modification so that they don't have to do any of the above. Loan modification can be less expensive and more profitable for banks, but not in every case.

How do I Get a Loan Modification?

To get a loan modification you generally have to ask. Call the bank and let them know about your financial situation. Just be honest and explain whether or not you'll be able to make your payments. If they agree, you may qualify for a loan modification.

Banks have different criteria, so there is no way to know ahead of time if you'll qualify for loan modification - you just have to ask.

What Types of Loan Modifications Exist?

Banks can change the terms of your loan to make the payments more affordable. These changes may be permanent or temporary. In any case, the result is a more manageable payment.

Loan Modification Options

Here's what you need to know about requesting a mortgage modification.

Tips for Asking

To make the process smoother, be prepared when you request a mortgage modification. The bank will want evidence that you cannot make payments. Gather the following items:

Monthly income, and detail of where it comes from

Monthly expenses, broken down by category (mortgage, food, transportation, etc)

Paystubs

Bank statements

Loan statements and agreements

If you present a snapshot of your financial situation, the bank can make a decision on your mortgage modification more easily.

How Long Does it Take?

You should expect to spend several hours of your time requesting a mortgage modification. You'll wait on hold when you call, you'll have to present your case, and you'll have to hunt down documents and forward them to the bank. This is no small task.

After you request a mortgage modification, you should expect to wait several weeks before the bank actually does anything. During that time, do what the bank tells you - for example, they might say that you have to continue making payments to qualify for the mortgage modification.

Mortgage Modification Helpers

Plenty of businesses want to help you request a mortgage modification. The price you pay for their services is steep - often as much as a monthly mortgage payment. You don't need anybody to help you request a mortgage modification (your bank makes a decision based on your financial situation, not who is asking).

Furthermore, you'll have to provide the same information to the helper as you will to the bank. Just call your bank first and ask what you need to do for a mortgage modification. If you want to pay somebody for their time and guidance, that's fine - just be aware that you don't have to.

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July 26, 20090 found this helpful

Here are the facts, eligibility, procedures and contact info. http://portal.h … /loanmodfact.pdf

Also, HUD has loan councilors who can direct you to legitimate and honest companies in your area at no charge. www.hud.gov Good luck!

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October 8, 20100 found this helpful

I have been trying to go get a loan modification, so far it's been 8 months of paper work...back and forth, they don't keep you updated regarding your request. After 8 months, they now still want monthly bank statements, and monthly hardship updates (monthly) and then every 90 days an update on your financial situation. Then they inform me that people in foreclosurer and delinquent payers are first to be reviewed. How long will this actually take. People who are in foreclosure and delinquent payers are first to be reviewed...so in the mean time I have to continually send them statements, hardship letters and financial situation, that will not or has not changed. WTFish it's been 8 months already. This they did not disclosure to be on the onset. I can only keep sending this info and hopefully something will come of it.

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December 23, 20140 found this helpful

My mother-in-law is loosing her house. She didn't have a job for a little while and is very behind in her payments. Is there anywhere that can help her? She lives in Jacksonville, Mississippi.

By Maria

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