Do You Really Need the Services of a Loan Modification Company?

Do You Really Need the Services of a Loan Modification Company?
by: Bridget Toomey



Every homeowner who is thinking of modifying their existing mortgage in
order to save their home from foreclosure is probably wondering whether
they should apply for a loan modification on their own or utilize the
services of a loan modification company.

The arguments for and against using a loan modification company always
comes down to two factors – time and money. If you study those two
factors carefully, you will realize that it makes more sense to take help
from a professional loan modification company or consultant to process
and handle the loan modification application.

Time

Let us take the first factor into consideration which is of time. Loan
modifications take a long time to complete. Even before you complete your
application, there are a number of things you need to do to give yourself
the best chance at a modification. Studying the correct prescribed format
set by the bank, arranging for all the required documents, following up
with the bank to make sure you have all paperwork completed properly
before applying for a loan modification etc.

Once you do file your application, then it takes a considerable amount of
time before you even start the negotiations with your mortgage lender.
The overall modification process takes a minimum of 90-120 days to
complete and you need to follow up with your lender at least once a week
to make sure your lender stays on top of your loan. In addition, you need
to constantly make your lender aware of your current situation, repeat
why you need to modify your loan, check on what are the best possible
modified loan packages being offered by your lender etc. Given the
millions of applications received by lenders already, it is imperative
that you follow up on your application to make sure it doesn’t fall to
the back of the line or worst canceled out of their system if you don’t
follow up.

You will also have to take time from work to make sure you call your
lender during business hours because that is typically when any
processors or negotiators work on modification files. Given the state of
the economy, it is not a good idea to take frequent time away from your
work as you don’t want to risk losing your job altogether. If any of the
points above apply to you, it is probably better if you have a
professional loan modification consultant do all this work for you. Let
them run around the lenders and get them to discuss and negotiate a
modified mortgage plan on your behalf.

This not only saves you a lot of time which you can utilize for much more
constructive things, it also gives you a chance for a better modification
as a professional loan modification consultant will be able to work the
lender for the best possible modification. Furthermore, imagine if you
spend months calling your lender just to learn later that your
application has been rejected. All the hard work will go to waste and it
is better you let a professional handle the application while you
concentrate on your work and family.

Money

Most families are aware of the time factor of loan modifications. Yet
they choose to modify the loans themselves as they are not in a position
to pay the huge upfront fees charged by the loan modification companies.
Of course the number of scams that have been reported lately has also
been a big factor in homeowners choosing to modify their loan on their
own.

The fact however, is that there are a few companies who absolutely do not
charge any kind of fees until your loan modification is actually approved
by your lender. This means that you do not have to pay anything upfront
until you know that you have a loan modification approved by your lender.
This makes it so much easier for you as not only do you save on time, you
save on paying a company an upfront fee until you absolutely know your
lender will be able to modify your loan and make it affordable for you to
live in your home.

It is highly advisable that you search for such companies who guarantee
no fees until your application is approved by your lender and utilize
their services to apply for a loan modification.

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About The Author
Bridget Toomey is the founder of The Loan Modification Foundation, a home
loan modification company backed by attorneys and real estate consultants
specializing in loan resolution and modification services. We guarantee
no fees until your Loan Modification is approved by your mortgage lender.
For more information visit www.LoanModificationFoundation.com


The author invites you to visit: http://www.loanmodificationfoundation.com