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Mortgage Modification Program - Can You Do It Yourself

By Kate Ford

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Published: 03Apr2009
Word count: 672
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Are you a candidate for a mortgage modification program? If you answer yes to any of the 5 following questions, consider applying for a home loan modification.

1. Are you late on your mortgage?

If you are late on monthly house payments or about to be late, you should consider contacting your mortgage servicer as soon as possible to determine whether you can be considered for mortgage modification.

Home loan modification is simply an agreement between lender and borrower to change certain terms of your loan such as interest rate, length of term (number of years), and fees or charges. The result is a monthly house payment the homeowner can afford.

2. Are you on the doorstep of foreclosure?

If you have recently received a foreclosure notice or been contacted by your lender about stopping foreclosure, you certainly are a candidate for a mortgage modification program.

Once you become late on your mortgage, the clock of foreclosure begins to tick. Firstly, you are assessed a late fee but that is just the beginning of charges. Foreclosure laws vary from state to state but regardless, foreclosure fees to be charged by the lender quickly accumulate.

Here is the thing however. It is never too late. So don't give up without a fight. Under a mortgage modification program, the lender can choose to forgive those charges and reinstate your home loan. Due to current economic circumstances it is highly likely your lender will be much more agreeable to your hardship.

3. Are your monthly house payments no longer affordable?

A mortgage modification program is all about hardship. There are dozens of reasons for hardship if you can simply articulate them. By explaining your hardship, the opportunity exists of being granted a mortgage holiday for one to six months while you catch up.

Factually speaking banks don't want homes in foreclosure. High foreclosure rates affect their ability to make new loans and attract new capital. So it is in their best interest to be as accommodating as possible, especially now.

But remember banks are inundated with requests. So prepare a presentation of the details to your particular hardship before you make the first contact.

4. Have you lost your job or are you making less money?

If you can show that you have recently had a change in your employment status or even lost a job, you are candidate for loan modification. Lenders are aware of economic conditions and are under pressure themselves to do everything possible to keep borrowers in good standing. So take advantage of it.

5. Are you currently negotiating with your lender about loan modification?

You are obviously a candidate for a mortgage modification program if you answered yes to the above question. What you may need is guidance.

Right now homeowners are bombarded by loan modification services promising assistance for a fee. These services often charge thousands of dollars for guiding you through this process. Is it worth it to pay thousands of dollars or can you do it yourself?

Only you can answer whether it is worth the cost to hire an outside service but doing it yourself is certainly an option. In fact banks and mortgage servicers actually say they prefer homeowners doing the paperwork themselves. No matter who you hire, you are still primarily responsible for the paper work that is going to be required.

Here are the two main differences between proposing a mortgage loan modification yourself or hiring an advocate to perform it for you.

Who does the paperwork, you or your modification service? Even a modification expert helping you must supply the details.

How much is it going to cost? If you are willing to study a little, you can save yourself a few thousand dollars.

My recommendation - educate yourself. With a little research you can determine whether you want to hire a professional service or initiate a mortgage modification program yourself.

Remember what I always say. It is your home and your mortgage, no one, and I mean no one, is going to care about more than you.

Kate Ford understands how confusing the subject of loan modification is for homeowners. It's time to pull up a chair and visit with Kate at Get-Your-Best-Mortgage-Rate.com. She will compare the two main differences between hiring a service for thousands of dollars and originating the mortgage loan modification in the comfort of your home.

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