Do I Need A Loan Modification?

A lot of homeowners are trying to figure out if they need a loan modification and if they do how can they get it done quickly.  You don't need a loan modification if you are able to make your mortgage payments.  You may qualify for a loan modification if you are unable to pay your mortgage, but you have an income that would enable you to pay your mortgage if it were lower.  First, your bank is not going to reduce your mortgage below its current market value. So, if you have a $200,000 mortgage and your property is worth $250,000 you are probably not going to get approved for a loan modification. Second, the bank will want proof that you will be able to make the lower mortgage payments.

Beware of scam artists that are operating in this arena.  Some companies are charging hefty upfront fees with all sorts of promises and guarantees and end up delivering absolutely nothing.  The fact is that this is something a homeowner can do themselves by speaking directly with their lender. Also, some of these companies and lenders are telling homeowners that they need to be behind on their mortgage to qualify.  This is not only untrue, but it is completely illegal. You can quickly find out if you qualify for a loan modification by visiting the Making Home Affordable website.

On the other hand, there are legitimate companies that have relationships with banks that may be able to help a homeowner get their loan modification processed faster than if they were trying to do it themselves.  You will want to make sure the company you are considering has a track record with your lender.  Also, never pay any fees upfront. Keep in mind that nobody can guarantee that you will get a loan modification.  The decision is ultimately up to your lender.

HomeplexNation has partnered with Homeowners Relief and Resolution Partnership and provides free consulatation to any homeowner that is interested in learning if a loan modification is right for them.  Click here for more information.