Loan Modification - Can I Qualify?

What is a Loan Modification? That is where you and your lender agree to modify one or more of the terms of your home loan. The goal of a Loan Modification is to help you keep your home and to give you a real, meaningful, sustainable, and long-term adjustment to your current home loan that works for your financial situation.

Do any of these situations apply to you?

* Are you behind on your Mortgage?

* Going Through a Financial Hardship?

* Do you have an Adjustable Rate Loan?

* Looking to Prevent Foreclosure/Losing your Home?

* Having Trouble Refinancing?

* NO Equity

* Do you owe more than your house is worth?

* Looking to lower your payments?

You may qualify for a loan modification, if any of the above apply. You do not have to be behind on your payments.

With so many thousands of homeowners having trouble paying their mortgages, Loan Modification is one of the best options in order to lower their monthly payment and avoid foreclosure.

Avoid Paying Advance or Upfront Fees - If you are behind in your mortgage payments, you may be contacted by individuals or companies that will offer to help you work out a loan modification with your lender or provide other services to you in order to help you prevent a foreclosure on your home.

What are loan modification scams? Essentially it's when a modification company offers their services to help get your application approved, but for an advance or up-front fee. After the fee, they promise to work on your case, but what is their motivation of getting an approved loan modification when they already have your money. But sometimes they don't disappear, a portion of them give you follow up calls to tell you the "status" of your application, or to request more money to move the application along.

How To Avoid Loan Modification Scams -

A. Do It Yourself- If you have the knowledge, patience and time, you can do it yourself. You can contact your mortgage servicer and/or lender directly and request a Loan Modification that works for you and your lender. Don't wait to call if you cannot make or believe you will not be able to make your mortgage payments. Be persistent! - call back many times. Make detailed notes about your attempts to call, when you have left messages, who you speak with, what was said, and what offers are discussed and/or made. Remember that when you call a Lender, you are calling a debt collector, and anything you say to the Lender can be used to collect that debt. If you have no experience negotiating with a debt collector, it is much wiser to let a professional handle it.

B. Why Not Use An Attorney?

1) Attorneys charge upfront fees, usually with a minimum fee of $3000.00

2) Even if the Attorney is unsuccessful, they will keep the Clients money.

3) Most Attorneys have no experience dealing with a mortgage Lender.

4) The main goal of an Attorney is not to modify a loan but to create a lawsuit against the lender. The majorities of these lawsuits have no grounds, and therefore are unsuccessful. Attorneys will keep the Clients money anyway.

C. Other Free and Safe Options -- If you don't believe you can negotiate a Loan Modification yourself, or if you do not want to, there are safe options available to you.

1. The U.S. Department of Housing and Urban Development ("HUD") offers Foreclosure Avoidance Counseling. Go to HUD's web site at http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm. HUD also offers information to homeowners facing the loss of their home.

2. Contact a "No Upfront Fee" Loan Modification company and pay only when they get results that you and your lender can agree with. Find one that analyzes your whole financial situation, not just a Loan Modification, but also a Loan Modification Repayment Plan, Forbearance Modification, Short Refinance Modification, and Property Tax Modification.