A Little Research Can Go a Long Way When Considering Loan Modification

If you are looking into a loan modification for your mortgage, you should be very careful, as many companies now say they can modify your loan and are actually trying to scam you.  It’s unfortunate that this is happening, but as with all things, something good that is intended to help people in times of need always winds up with a scam that operates so closely in the same way that people really don’t know the difference.  So, how do you know if you’re really looking at a legitimate loan modification or if you’re looking at being scammed by someone who is claiming to be able to modify your loan?  And, how, if you are currently working with someone to get a loan modification, can you know that they aren’t scamming you?

• Someone who will perform a loan modification for you shouldn’t be charging you money you don’t have.  If a person or company says they can modify your loan, but turns around and tells you that they need $3000 to do so, you need to walk away.  In a legitimate loan modification, the terms of your current home loan are re-negotiated and any of the fees associated with your loan modification can be rolled into the balance of your loan.  The idea is to get you paying your mortgage again, not drive you even more broke than you already are.
  


• Often, you can find people who are willing to help you get a loan modification who work on a strictly volunteer basis, so they will never charge you.  These are the people you should be looking for, not the ones who charge you a fee.
  


• Talk to your lender.  Many times, when you get a loan modification, you can work through your existing lender and they will work with you to modify your loan in a way that you can afford and keep your home.  So, you should try to talk to your lender first, anyway before you go to someone else, as a third party can only serve to complicate matters if they aren’t well versed in your particular situation.  If you don’t get the desired results from your lender and want to discuss your options for a loan modification, you should keep calling and talk to more people than just the customer service rep who you land on.  It is okay, and sometimes expected that you keep going up the chain of command with your lender until you get a hold of someone who can negotiate and work with you in these situations.
  


• Another way to guarantee that you get a loan modification is to file Chapter 13 bankruptcy, which will allow you to come up with a repayment plan on your back mortgage payments and help to modify your loan so that you can afford to make your loan payments without facing financial hardships every month.  You will not be scammed by filing chapter 13 bankruptcy, because it all goes through the courts.  If you can find no other help, chapter 13 may be your best bet.
  

No matter how you get a loan modification, if you are having financial hardship and can no longer afford to make your mortgage payments as they are, but need to, want to stay in your home, then you need to get a loan modification so that you can make your monthly mortgage payments and get back on your feet.