Is Frustration with your Lender Setting in?

by chadfish on August 21, 2009

Are you getting frustrated with your attemtps to modify your personal mortgage? There are a number of stories coming out in the press about people trying to get a loan modification done, but unable to get anywhere and they are getting fed up with the process.

The other day President Obama was given a letter from one of his staffers about a homeowner in Georgia. The man was trying to get a loan modification done, but was unable to get any traction and was completely upset about the long drawn out and painful steps he had to go through. Obama seems to be sensing that the Making Home Affordable Program isn’t making as much progress as he hoped and new oversight and auditing of the lenders will hopefully commences here in the next couple months.

Many people are finding that a loan modification may only extend the number of years you have to make payments for or you might get a slight and usually temporary relief in the interest rate. For people looking to cut their monthly payment, extending your loan term from 30 to 40 years could be a huge win. Granted you will end up chained to the house payments a little bit longer and end up paying a lot of interest over the life of the loan, but it can also help you weather the rough patches that many people are facing.

A loan modification is not a panacea for all your problems. If you’ve suffered a permanent medical disability or a substantial and prolonged decrease in your earnings, it may be time that you considered giving up your house. That is not an easy decision, but if things get too tough, moving to the rental market might allow you time to get your personal financial house in order and then consider owning 3-5 years down the road.

Working on the loan mod can be a frustrating experience, so try to take it in stride and reach out to other people in the community that are having a similar issue. Just know that you are not alone and thousands of other homeowners out there are trying to do the same thing and with a little luck and persistence you too might get it done.

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