Home Loan Modifications

Due to the bleak financial landscape we’re currently facing, lots of homeowners have been almost forced to consider bankruptcy or foreclosure. Homes have dropped in value and people are struggling with layoffs and wage decreases at work, but monthly mortgage payments stay high. That makes people unable to pay their monthly premium, and it isn’t their fault at all. The silver lining to all this mess is that there is mortgage loan modification assistance out there to help.

Foreclosure isn’t the only thing that can happen if you’ve been having trouble making your monthly payments. With the advice of a free HUD-approved counselor, you can learn about all your options from here on out. Even if you thought you wouldn’t be eligible for refinance, ask your counselor about it. Recent acts like the HOPE for Homeowners refinance program and the Making Home Affordable refinance plans relax traditional refinance requirements and allow more people to refinance their mortgages.

Even if you can’t refinance, you can take advantage of new programs for adjusting unaffordable mortgages with high monthly payments. The Making Home Affordable plan has a $75 billion initiative to facilitate loan modifications for 4 to 5 million U.S. homeowners. This will help them get monthly payments they can pay, and prevent millions of foreclosures across the country. Asking your lender to modify your loan can result in lower monthly payments that are below 31% of your gross monthly income.

If you want to get your home loan modified, then you need to find a financial consultant that can give you the professional advice you need. HUD gives out referrals to free counseling services from approved non-profit groups, but it may be more convenient for you to work with one of the many for-profit loan modification companies that have appeared on the market in recent years. Both types of companies have advantages and drawbacks.

If you want a for-profit loan modification company to help you out with your loan modification needs, make sure that you read all contracts thoroughly and get all fees explained to you ahead of time. Look for a 100% money-back guarantee if a loan modification does not work out; otherwise, it could be a scam and you could never see your money again. Any company you’re considering should be in good standing with the Better Business Bureau, or else find somebody else.

To stay safe from greedy scam artists, refuse to sign with any company without a guarantee, any virtual company with no physical office or agent to speak to, or any company that charges large fees up front without much explanation. Also, whenever you are approached by a loan modification company via email or at your doorstep, use extra caution.