This is great question. Because there are two schools of thought on the loan modification cost issue. School of thought #1 – Loan modification should be free. This is absolutely true. In fact, anyone can apply for a loan modification directly through their lender and in most cases it will be free. Zip, zero, zilch! Free. Many homeowners go this route and have some success working directly with their lender to get their home loan modified. Also, there are government agencies that are set up to help homeowners in trouble that want loan modification advice. If you want help or advice you can check with a HUD approved counseling agency at (800) 569-4287. You could also check with your state department of real estate or similar to find out what resources are available to you at the State level to assist you with getting a home loan modification. All of these options are free to you.
School of thought #2 – Higher a professional or expert mortgage modification company to get the job done right. There it is hire… hire = money. Well, that’s the truth of it, it’s going to cost some money to go down this path. A Quality loan modification company is going to charge somewhere between $2,500 and $3,500 for their services. Anybody that’s charging less I would seriously wonder if it isn’t somebody down in their basement negotiating with your bank. Is it worth it. Absolutely! Why? Because a professional loan modification company is going to bring a lot more knowledge and expertise to the table than you have on your own. Look, you’re an expert at what you do but more than likely you’re not well versed in the legal aspects of mortgage banking, state lending laws, RESPA laws, TILLA laws and all of the other legal aspects that go into a mortgage. A professional modification company will have lawyers on staff or retainer that have expertise in these areas that they can bring to bear on your lender.
Credit scores are important, and yours, is something that you have worked endlessly on in order to get that credit score that you needed to purchase that beautiful home that you live in. Years of making wise financial decisions and working hard to make those monthly payments should not be lost by giving up on your house, HELP IS AVAILABLE.
As a homeowner, trying to do a loan modification on your own, you are more than likely not familiar with all the different types of deals your bank is structuring and giving out. You wouldn’t know that if your bank offers you a fixed 5% rate that they gave a 4% rate to the next guy in a similar situation. That 1% difference on a $200,000 loan would cost you an extra $42,772 over 30 years. A professional home loan modification company will know what a good deal is and represents your interests with the bank – they’ll know what a good deal looks like and if they’re worth their salt they won’t accept anything less than a good deal for you.
Finally, and I think this one is really one of the huge bonuses to clients of an expert loan modification company – you don’t have to worry about it. If you’re trying to negotiate your own loan modification then you’re walking around stressed all the time wondering if you’re screwing it up, worrying about why the bank isn’t calling back, and wondering if you’ll get declined. Engaging the services of a professional mortgage modification company relieves you of that stress and anxiety, and lets you enjoy your life a little more. It frees your mind up to focus on your family, or work, or whatever you want.
Learn more about Obama Mortgage Relief Plan Qualifications.