Should You Be Thinking About A Loan Modification?

PRLog (Press Release) - Apr 01, 2009 -
Yes, loan modifications ARE real and there are step-by-step blueprints available to you to get one. In this crazy world of “upside down” (owing more than your property is worth) mortgages and daily headline financial bombs, more and more people are beginning to realize there’s an option that could save their home called Do-It-Yourself (DIY) loan modification kits. The fact is that mortgage terms can be flexible, especially right now.

What is a loan modification? In simple terms, it’s an agreement reached between you and your lender to change the terms of your loan by adjusting the interest rate, etc. There are many reasons a borrower might seek a loan modification and, in many cases, it can be good for both sides. For the borrower, the biggest reason is it can make the loan more affordable and allow you to stay in your house. From the lender’s perspective, it’s better to take a reduced monthly payment and allow a borrower to stay current on payments than to implement a foreclosure.

Foreclosures are messy and expensive. Nobody likes them.

Somewhere along the way, a whole bunch of people got it in their heads that mortgages are written in stone, like the Ten Commandments, and can never be adjusted without obtaining a new mortgage (commonly called refinancing). With the term “loan modification” ingratiating itself rapidly into the current lexicon, obviously loans can and are being modified on a large scale.

Is a loan modification for you? Maybe. The Federal government, regulators, and private financial institutions have responded to the foreclosure tsunami with many programs intended to help distressed homeowners keep control over their largest and most prized investment in life. The numbers can be staggering. According to the Mortgage Banker’s Association, in August 2008 alone lenders modified 79,000 loans. Those numbers are only getting larger.

If you’re one of the millions of homeowners desperately trying to figure out to stay afloat, the first likely question to cross your mind is, “Are these kits on the up and up? Is the information legitimate or is the whole thing just a rip-off?”

The truth is that any time people are desperate there will always be a few vultures waiting in the wings to pick wallets clean. Sorry, it’s human nature of a certain segment of society to take advantage of others so, yes, you need to be careful of loan modification kits. Establish that you’re dealing with a respected company before putting up a wad of cash.

One confusing part about the whole do-it-yourself loan modification industry is the broad range of prices you will encounter. A quick search of the internet reveals home saving packages that range from a few hundred to a few thousand dollars. What can a DIY loan modification kit do for you? The worst of these kits are a hastily thrown together collection of random information tangentially related to the topic. The best of these kits are put together by real estate experts who walk you through the process step-by-step.

How do separate the good from the bad? There’s no fool proof way to do this but you might start by looking at the company behind the loan modification product. Is this a Johnny-come-lately with no previous track record who decided to jump into the industry? Is it a respected name in real estate with years of experience and a long list of satisfied clients like Platinum Properties Investor Network (PPIN)? Jason Hartman, founder and CEO of PPIN, has a reputation for helping people solve problems and reach financial independence through real estate investing. You can put his two plus decades of industry experience to work for you by calling 714-820-4200 or visiting http://www.JasonHartman.com and asking one of his professional investment counselors which loan modification program he recommends.

Who should be interested in learning more about loan modification? You, if you’re behind on your mortgage payments or, better still, aren’t behind yet but are afraid it could happen. It’s true. The lender will appreciate the pro-activity if you present your case and explain that you see trouble coming.

Should you sell your home, even if the money received won’t be enough to pay off the loan? Should you just walk away? This is almost always a bad idea and will likely ensure you never own a home again. The answer to your troubles just might be a loan modification. Imagine the peace of mind you can buy for less than $500. Approach your lender about adjusting the terms of the loan the right way and chances are good they’ll say yes.