subject: Mortgage Loan Modifications - Home Loan Modification Facts and Myths [print this page] Mortgage Loan Modifications - Home Loan Modification Facts and Myths
When it comes to getting a home loan modification, youwill surelyencounter many loan modification myths.If youare currently struggling to make your payments, have been late on your payment, or you haveendured some sort of hardship and needa more manageable payment, it is critical that you separate loan modification facts from fiction.
Loan Modificationmyth # 1:
You need to hire an attorney to do a loan modification for you.
Fact - This is not true. However, an attorney can be a powerful tool in achieving your goal of saving your home. The problem with an attorney is money. They expect to get paid in advance and they truly cannot guarantee any specific results (nor can anyone else - remember, this is a negotiation with your bank).
Fact - If you educate yourself and get a step by step guide, there is a strong chance you can modify your loan on your own. Be prepared, it will take time and perseverance and will more than likely be a frustrating task, BUT a fruitful result will make it all worthwhile (especially considering you'll be paying on this thing for the next 20, 25, 0r 30 years).
Loan Modificationmyth # 2:
The banks are doing everything they can to help struggling homeowners. Again, this is not true.
Fact - Banking is a business. In the same way that a retail store cannot give everything away and remain in business, the same would apply to the bank that services or has invested in your home loan. They will do their best to mitigate losses by analyzing which would SAVE THEM the most money (foreclosing or changing your loan terms). They will also make sure that they give the least away possible while also giving themselves the closest thing to a guarantee possible that you will be able to make the new payments. In other words, if it looks like you can pay 80% of your current payment they will not do any better. They are not your friend and they will take as much of your money as they can. It's that simple.
So, can you do a home loan modification yourself? You should be able to with a little perseverance and an easy to follow road map of what to do and how to do it.
