Loan Modifications – Do It Yourself for Best Results

Loan Modifications – Do It Yourself for Best Results

A lot of people got caught up in the real estate bubble. They bought more than they could provide thinking they could always sell at a profit. Some folks didn’t buy a new house but refinanced and took cash out to remodel or pay bills. Nobody could see the recession coming which ultimately made it difficult to pay the home loans. To add insult to injury, home prices fell and there is no way to sell the house for already the loan balance.

So what do you do?

The good news is edges are willing to modify some loans. They have pretty strict criteria regarding what they will and will not do. They generally will not modify a loan if you are able to make the payments. The fact that home prices dropped does not fall into the many reasons why a bank would lower your payments. Remember, you filled out and signed an application that said you could and would make the payments.

You must show something has changed that now makes it difficult if not down right impossible for you to make the loan payments. Did your hours get cut at work? Did you or your spouse get laid off? Was there an emergency that caused you to miss work or disabled you so you can’t work? These are all reasons that are permissible to the bank.

There are a lot of other reasons they will accept if you know how to present them. Sometimes things that make sense to a banker wont make sense to you. This is why you need to educate yourself on what will work and what wont.

In some situations the bank will lower the payments temporarily for 5 years or more if you can show you will be able to make the payments in the future. Sometimes just for simplicity they lower the payments permanently.

You are negotiating the biggest asset you will ever own. In most situations, you are trying to protect your home which probably is worth at the minimum a quarter of a million dollars or more. You don’t want to make any mistakes.

There are several loan alteration courses you can take to educate yourself. Remember, knowledge is strength, especially when you are negotiating with someone who has much more knowledge than you. If you make a mistake, you may lose your home or find yourself in the same situation in a year or so.

Learn all you can about loan modifications before you contact the bank. Please follow the links below to review the #1 course for loan modifications

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