Loan Modification Services

by admin on February 19, 2009

Before you go for a loan modification services, you need to prepare important facts about yourself to be in the best position to talk to your lawyer. The process itself entails the following steps and questions:

1. First the understanding of loan modification services?
You need to first understand that loan modification involves an enduring restructuring in some of the terms of the agreement, to enable the borrower to make affordable monthly payments.

2. Will there be levies by the creditor?
Any levies due to delayed payments cannot be included by the creditor as per HUD. You however, need to check the components of the total charges that are mentioned by the creditor.

3. Will the bank insist on inspection of house?
The next question is whether the bank will insist on a perusal of the house to verify the condition. This may be allowed if the creditor feels that he needs to show the bank that the value of the property will not be decreased.

4.What are the eligibility criteria?
Your eligibility to get the loan modified depends on the restructured schedule and your capacity to make the payment. You need to demonstrate through your asset statement that you will be able to adhere to the new schedule.

5.Is it necessary to default to qualify for loan modification services?
It is not necessary for somebody to default on a payment to take up loan modification services. You can go for this even when you feel that due to inflation and bad economic conditions, it is difficult for you to make payments. It is therefore recommended to discuss with your creditor at the earliest issues about any payment difficulties.

6.What are acceptable conditions?
Now the question is what is construed as a tough situation that a particular borrower cannot make his payments. While it is different for each borrower, broadly conditions like illness, a job loss or a separation are considered to be plausible reasons. You need to support your application with a letter stating your problem to ensure success.

7.Will this process help in my foreclosure getting stalled?
A loan modification service will certainly assist in stalling the foreclosure and as long as you are able to work out a mutually acceptable arrangement with your creditor, it will do the needful.

8. Is it possible that the default payments will be added to my new structure?
The answer is in the affirmative and those defaults will be included into the restructured balance.

9.Should I take somebody’s help or can I help myself?
If you are knowledgeable about the process and have no problems talking to your creditor, you can approach this process on your own. If not, you need to take the assistance of a good company who will also charge you an upfront consultation fee. You need to be sure that you can afford it before venturing.

10 How do I make a beginning?
Equipping yourself with information and talking to your creditor about the problem is the first step. Make sure you study the options available and the forms you need to fill for the same.

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