How much doas a loan modification cost?Please Help?

A loan modification is a big scam….beware. First your calls are recorded and sensitive information is preyed from you about earnings and family and job history. If you are back payments then they will add those on to your payment plan . Thats the only real cost outside of some potential modification fees! But, many people live and die in a modification only to find they eat up savings to make higher payments for three or four months and now are denied the lower rate under a modification. It’s often deceptive and would better serve you to get an attorney referral to a modification service.

There is no way to give a precise answer because it depends on your personal situation. If you have a $700 a month mortgage payment it’s going to be very different than if you have a $2000/month mortgage payment. But what happens is the mortgage company looks at your arrearages, plus the late fees, etc that have also been incurred, and determines the payment by tacking on a portion (usually a large one to get you paid in 12 months or so) to the regular payment.

Sometimes Chapter 13 bankruptcies are more affordable than loan modifications (actually a lot of the time) because it locks in the amount that is “tacked on” based on when you file, and you pay the arrearages INTEREST free through the plan.

Be very careful, do not fall for any equity stripping scammers. Avoid Foreclosure Rescue companies at all costs because they are most likely scammers that make things worse than they were. I do recommend seeing an attorney experienced with foreclosure and bankruptcy about this. If you can afford a loan modification you can avoid bankruptcy but chapter 13 is there to help you keep your house.

Why should it cost anything ? In most cases you ought to be able to contact the loss mitigation department of your lender and see if they are willing to modify your loan. You should have all the proof of financial difficulty - if your are claiming so - available. You can call or write a letter. Lender’s these days are aware of the ongoing issues and in most cases are willing to negotiate. keep in mind though that there is only so far that they are willing to go and that the loss mitigation department and the foreclosure department work independently and as long as there has been no agreement on the loan modification, the foreclosure proceedings will continue ( That is if you are already in default). So, to sum it up, you do not need to pay anyone to re-negotiate your loan for you. There is nothing they can do that you yourself cannot do. Now, if you are upside down on your loan and need to arrange for a ” short sale” you may use the services of a real estate broker with related experience to list your property for you which also should not incur any advance charges except for the commissions which in such cases are paid by the lender. Hope this helps, and if you have any other questions, you are welcome to contact me AT NO CHARGE !