You’ve worked out that you are above the magic number of 31% i.e. your monthly mortgage payments are more than 31% of your pretax income – then you are likely for a home loan modification. (To find out eligibility for home loan modification, visit www.loanmoddepot.com )
This is not a guarantee. But depending on other factors – the reasons that your payments are such a high portion of your income – your chances are good.
Now what? Many lenders will tell you to come to them first.
What Kelly fails to point out is that most loan modification experts will not take an upfront fee – in most states, they are not permitted to.
If an expert, after he helps you save multiple of thousands of dollars in payments and/or interest, all while being able to continue living in your home while the process evolves, takes a small portion for services rendered, isn’t that a fair trade-off?
Remember, you are asking the lender to reduce their profit by asking for better terms. Is it not a conflict of interest – if the same lender who is processing your loan modification application is also working on the foreclosure of your home?
But what about the attorney? Isn’t there some truth to the lawyer jokes? I wish I could tell you otherwise. There are surely a lot of snake-oil salesmen out there.
A reputed attorney though, is vested in getting your mortgage lowered. It’s in his interest to see you succeed – so he can get paid. He will work the phones; use his network of contacts in the industry, to get your application to the top of the chain. If paperwork needs to be filed to stop foreclosure of your home, they will do that.
Howard Miller, 2009 president of the California State Bar and a partner at Girardi Keese, a Los Angeles law firm says attorneys can help borrowers understand their legal rights among other things.
The process of loan modification is not a quick one. There are multiple offices to file paperwork with and follow up – multiple times. A loan modification consultant may be worth the money – especially if they only need to be paid on successful modification.