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Dustin Rohde

Home Loan Modification Specialists Are A Good Idea

Monday, October 12, 2009 - Article by: Dustin Rohde - Legal Loan Bailout - Message

Before going into why you should use a professional when getting a home loan modification, let’s first discuss what a home loan modification is.

A home loan modification is when the bank agrees to change the conditions of the mortgage, allowing the home owner to stay in their home.  There are several forms these changes can take. One is a lowering of the interest rate, or changing the rate from a varied to a fixed.  Another is a change to the length of the mortgage’s duration; and even a lowering of the initial principle of the loan.

Added into the mix is President Obama’s Home Affordable Plan: HAMP (Home Affordable Modification Program). This is a $75 billion initiative intended to help people afford their mortgages and stay in their homes. Lenders are encouraged to assist borrowers who are having trouble keeping up with their monthly mortgage payments. These homeowners are facing foreclosure if no solution is found.

The banks are rewarded with $1000 for each home loan modification that they complete, so they ARE willing to help. President Obama had this in mind when he came up with this plan. With government resources being provided, approved banks can modify a loan so monthly payments are more affordable.

It may seem to you that a home loan modification is something you can do yourself; it might be, if you are an attorney or work in the loan industry. However, if you aren’t an attorney or don’t work in the loan industry, then you ought to seriously consider getting help from a professional. There is a lot at stake. You’ve worked hard to get to where you are and you don’t want to lose it.

There are a couple reasons why a home loan modification specialist is good way to go. The first is that because they deal with lenders on a daily basis, they know how to talk to them. Not just all the legal jargon, but the proper way to negotiate with the bank. They’ll know if what the lender is offering is the best possible option and if it is fair. Also, because of their existing relationship with lenders, they’ve made the business contacts needed to get you the best possible deal.

Secondly, the bank is going to be more likely to give you a better modification when you work with a professional, because the bank knows it isn’t going to get anything past them. Granted, the banks would rather have you modify your mortgage then have to foreclose. They don’t want the hassle of trying to resell the house. But that doesn’t mean that they will automatically give you all that they can just because you ask.

A foreclosure not only costs you your home now, it leaves a mark on your credit report that will last for years; affecting your ability to buy a new house, or a car, and even getting hired for a job. Be sure you do everything you can to prevent it.

To learn more about home loan modification visit Legal Loan Bailout.

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