How Can I Save My Home From Foreclosure? Loan Modification

 I don't think any homeowner realizes just how many people need help modifying their loans.  I have hundreds on my desk foreclosing this week in just a handfull of counties alone.  It's a mess!  Homeowners are either too embarrassed to talk about their situation until it's too late or frustrated from getting the run around from their lenders and are ready to give up on their homes to save their sanity.  Lenders are just flat out overwhelmed by the volume of phone calls coming in to their "customer service departments" aka "revolving door of $8-$10 per hour earning, stressed out employees."  Couldn't they just hire and train more reps?...Well, how on earth could they and still turn a profit...or in this case at least slow their losses?  All these foreclosures means tons of loans that aren't being paid.  When have you ever heard of a company hiring more employees when their in a slump, much less a drop off a steep cliff?!  It's not going to happen.

So what do you do to save your home?  By all means try to get through to your lender.  Just don't let it be the only course you consider.  If you "thought your lender was working with you" (I hear it every day!) and you receive a foreclosure notice...guess what?!...you need to take a new course of action!!  A third party modification company can file the paperwork necessary to stop the foreclosure and help you modify your loan.

How can they do what you couldn't?  A reputable modification company will be working with a team of negotiators that probably already have a working relationship with atleast one negotiator from each of the loan companies, just as you have formed friendships with the people you work with.  They will also be working with a team of lawyers.  Just as with any legal matter, if you try to represent yourself, you get screwed!  You hire a lawyer and you come out smelling like a rose!  I'm not saying it's fair, just true.

What does the process consist of?  Do not pay to submit an application to a third party company!  Work with a company that will do a free application.  You'll be asked what happened to cause you to fall behind, what your interest rate is, as well as your income and budget details.  You should not have to provide you SS#, ID#, birth date and a credit report should not be run because your lender already has this information.  The third party doesn't need to have that information to negotiate new terms on your old loan.  Once your application is submitted to the negotiator you'll be informed if and how the third party can help you save your home.  A representative of the company will go over a contract, you'll send in proof of income and a "hardship letter" to be submitted to your lender with payment for services to hire the company.

What will it cost?  There are many third party companies out there ready to take your money.  Some will charge a fee equal to three morgage payments.  Some will charge less but require $300 to take your application without even knowing if they can help you.  If they can, they charge more, if not, you just shelled out hard earned money and are in the same situation you started in.  A fee of $2,000 is reasonable for the amount of work that will go into saving your home.  Make sure you work with a company with a 100% money back guarantee to protect yourself!!  I know as a general rule we're told to beware when told to send money upfront.  In this case, do your homework because you'll have to.  Many man hours will go into keeping you in your home.

Be patient!  Your foreclosure should be stopped before the sale date but it will take time from start to finish to modify your loan.  A couple months on average and possibly more depending on your situation.  Make sure the fee you pay will take you from start to finish of the process.

Now relax!  You don't have to come up with first, last and security on a rental.  No transferring of utilities or moving trucks (easily $2,000.00!) You don't have to change the kids schools. Just relax, make smart money choices and work hard to stick to the new terms of your old loan.  Ahh...HOME SWEET HOME!!