Considering Loan Modification

I’ve spent countless of sleepless nights lying in bed, wondering how I’m going to be able to pay for my mortgage. I blame myself for being too presumptuous and not having saved enough money when it was still easier to breathe. Now, I’m just barely scraping by, with what, less than a thousand dollars now left to my name? And so, due to pressing needs, I am now looking into Obama’s loan modification plan and hopefully qualifying for it. They say that it lowers my rate to 31% of my total pre-tax monthly income!

To make it work, my lender would first have to reduce my interest rate by 2%. If this doesn’t get it down to 31% of my total pre-tax monthly income, they will extend my terms instead. If this still doesn’t work, they’ll have a go at my principal and reduce it, or defer it to a later date. All of these measures really help because it would significantly reduce my modified mortgage payments. Speaking of payments, there’s even a very, very enticing incentive to encourage promptness in paying dues! If my payments are given on time, I can get as much as $1,000 subtracted from my principal loan each year for five years!



Only primary residences occupied by respective owners with outstanding balances of up to $729,250 are eligible. These eligible borrowers will have to verify their occupancy status and provide evidence of their financial hardship.

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In view of everything I’ve discovered, I now know that I have to accomplish two very important things. First is that I have to carefully and thoroughly review my financial status, and second is that I have to consult with my lender. I’m going to keep my fingers crossed and hope that my outstanding balance is staggering enough. It’s funny how I now wish that I’m in serious debt!

There are many loan modification scams out there

The sad thing is a lot of loan modification companies are really just scams. These scammers promise results or amazingly low rates but none of these actually give exactly what they promise. So what are the tell tale signs that a company is going to scam you? Here are the first scam detection loan modification tips on the list: companies that contact you before you contact them.


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This is the modus operandi of companies that are likely to scam you. First of all, scam companies love to use emails, because it is practically free and it reaches billions of people. Then, they use junk mail since it is also cheap. Finally, they use telemarketing and phone you up. These are lures cast on a wide scale in order to increase the likelihood of catching patsies.

But of course, legitimate companies do this as well because these are legitimate means of advertising marketing. But the second most tell tale sign that of loan modification scams is: upfront fees. Companies that ask for upfront fees are almost sure to be loan modification scams.

In the U.S.A today, billions of American citizens from all walks of life got caught in the recession and are having problems with their monthly loan mortgage payments. Those who are taking advantage of this situation where a lot of desperate people are willing to believe anything as long as it offers them hope to lift themselves up from their situation. These upfront fees might scare some away at first. Then the scammer will lower the amount and promise even lower loan modification rates so that you can start at least on your new loan. They will say that this is a special offer that they are giving exclusively to you. They will do anything just to reel you in.

There are really some real loan modification program companies out there. They can definitely help out by giving valuable advice and strategies and helping you along the loan modification processing. Remember that these companies do not get upfront fees. They will bill you after some time though. And also, it may be a bit hard to get a hold of their services because there are so many people availing their services as well.

Do It Yourself Loan Modification

I just visited a famous net forum with details on do it yourself loan modifications. Every one of us posting there own adjustable sub prime loan mortgages and are currently looking for the best way to increased payments.

The big aid the lenders say they are offering the worried borrower is not really what the borrower gets. At the time borrowers try to modify their mortgage loans they find resistance coming from poorly uninformed loan modification sections.

The Obama loan modification plan, is been created with standard qualification details to allow the average person or homeowner afflicted by the economic crises to be able to negotiate directly with the mortgage lender. The fastest way to start on with your do it yourself loan modification is by learning some simple steps that are vital to be successful in your loan modification application. Of course you realize you are not an expert and there may be a few things to miss, but if you work, study, and research hard enough about the loan modification process then you might just pull of a successful negotiation with your home mortgage lender and modify your loan so that you will be able to afford the monthly payments without sacrificing your daily necessities.



Imagine the satisfaction of being able to say that you are the one who successfully managed the modification process and negotiation of your home loan.

Just remember that the first thing you need to do is that you must speak with your lender. More specifically, you have to get in contact with the loss mitigation dept of your lender if not that, then get in contact with their home retention dept. There may be other names for this department but they all function in basically the same way. This is when you see if you can actually qualify for loan modification.

Fast Read: All You Need to Know About Loan Modification

Banks kept on giving out loans to anybody and everybody. The real estate market also profited from this since so many homes could be built and sold because it was so easy to get loans. Then, people weren’t able to pay the loans anymore. And then, the big bubble in the cash flow, the debt that was being spent faster than it was being paid of popped. The whole in the economy started the crash that everyone is experiencing now. Now, foreclosure signs are cropping up like mushrooms. People are looking for ways to stop foreclosure. This is why loan modification became so popular as a way to stop foreclosure.

What is loan modification?
Loan modification, simply put, is a change in one’s loan mortgage terms and conditions in order to make it easier for the borrower to make the payments. These changes are permanent and it can either create extensions or grace periods. It can also lower interest rates, monthly payments, and even lower the amount of the original loan itself. Loan modification is deferent from refinancing. With refinancing, one will get an entirely new loan. This means more paperwork. Loan modification is also easier since the loan is already pre approved.



How do I qualify for loan modification?
Banks and lender will look for a good reason for why you need loan modification help in the first place. The reason why you, the borrower, is in financial straits should be something that was unavoidable. Valid reasons include loss of income due to lay offs or reassignment, health problems, health bills, a death in the family, etc. Another important thing that one must know is that loan modification can only be done if the home in question is where you are living in right now. If it is just a secondary home or a vacation home then the one’s loan modification application will not be approved.