Loan Modification Do’s and Don’ts

One of the biggest mistakes you can make in a loan modification is to ignore the rules. You need to be educated before the negotiating process. it helps a great deal if you do your homework and arm yourself with the right information. After all, you’re dealing with lenders—and at the end of the day, you still have to play by their rules. Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls.

Do know your rights.
More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Our loan modification attorney system can help you understand your rights and use them to get the results you want.

Don’t wait too long.
The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, create your account to get started today.

Do work use the help of our system.
Your loan modification doesn’t rest soley in the hands of your lender, your broker, or our loan modification attorney system. These can help, but you have to do your part and cooperate with your lender. Make sure you follow our guide to properly submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.

Don’t file for bankruptcy, unless you really have to.
Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway—so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.

Do have a backup plan.
Not all people will qualify for a loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan BOur.  mortgage modification system can help you find the best solution.

If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.  We can link you with a Short Sale Specialist in your area for further information about selling your home to avoid further credit dings.

Loan Modification Case Studies