Loan Modifications and Foreclosure Assistance

Many homeowners today have an interest in availing themselves of a loan modification. They've worked hard to get their dream home and instinct says they should fight to keep it. Reluctant or uncomfortable with loan documentation, loan terms, unfamiliar paperwork and/or dealing with the procedural headaches of interfacing with the Lenders of 2009, who themselves are entrenched in paperwork of the innumerable applications for same, many homeowners/borrowers turn to assistance from companies who specialize in this process or who, at least, advertise that they do. The same can be said for the companies who advertise they can rescue you from the grips of foreclosure. May be they can...but the Federal Trade Commission is looking into banning them from collecting fees from you UPFRONT.....check this out: http://www.inman.com/news/2009/09/17/feds-may-restrict-mortgage-rescue-fees

If you have some time, are fairly organized and able to write a letter of 'Hardship" outlining your situation and requesting the modification, you can save yourself a lot of time and money. The application process, while not simple, is not overly convoluted. The Lenders generally have an application, with procedural guidelines and documentation requirements delineated on their respective websites. Most, if not all, states have information available as well. A little detective work will turn up good information. In any event, be patient and prepare yourself for a decent wait as Lenders are swamped. Be mindful of the acceptable definition of a 'Hardship'. Note that generally you must already be behind in payments for today's Lenders to consider a modification and you should investigate this carefully in the early stages of your endeavor. Keep a timeline in the back of your mind and if a different department contacts you about arrears/default proceedings, foreclosure and/or Trustee's sale, ensure that you communicate that you have a modification application in process and ask if they have communicated with that department and specifically request what your options are at that juncture. Best Wishes for Success! Keep the faith!