I posted this article last year in January 2009. Since I receive a ton of mail with the basic question, "How can I get a loan modification?" I felt compelled to re-post it again at the beginning of 2010.
Consumer Advocate Ralph R. Roberts Reveals the Top Five Dos and Don'ts of Loan Modification
DETROIT--(activerain)2009--Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, LLP, today revealed the top five do's and don'ts of loan modification. Since losing one of his own homes to foreclosure in the late 1970s, Roberts has made it his life's mission to prevent unnecessary home foreclosures. The following do's and don'ts are intended to dispel common myths about loan modifications, which typically manifest in the form of a rate reduction/adjustment to an existing mortgage.
#1. DO TELL YOUR SPOUSE OR SIGNIFICANT OTHER: It's tempting to hide bad news from your partner, but this can actually work against you. For example, in most cases, you cannot legally negotiate a loan modification without your spouse. You and your partner are in this together and are stronger as a team. Regardless of the reason, disclose it to your partner, put it behind you, and work together to resolve the crisis.
#2. DON'T ASSUME IT'S TOO LATE TO ACT: As long as you are still residing in your home, you have opportunities to keep your home.
#3. DO REALIZE THAT YOUR LENDER WANTS TO RESOLVE THE ISSUE. The only way the lender makes money is if their loans perform-modifying a loan through loan modification makes it perform for the lender. Banks and other lending institutions make more money and lose less money if you can make your payments. When they foreclose, they not only lose your monthly payments, they also have the expense of foreclosing (attorney fees), rehabbing the home, and then selling it (agent commissions).
#4. DON'T GO INTO HIDING: As hard as it is, failing to pick up the phone, return phone calls, or respond to notices is one of the worst things you can do. Your lender needs to know from you or your legal representative that you are aware of the delinquent payments and are working on a solution.
#5. DO SEEK PROFESSIONAL REPRESENTATION: You may be able to negotiate a loan modification yourself by working directly with your lender, but an experienced attorney or loan modification expert can properly represent your case to your lender that your loan is modified to a level of affordability. Homeowners who represent themselves often overestimate what they can afford to pay and end up in the same situation months after they receive their modification.
Ralph R. Roberts, CRS, GRI
Loan Modification Expert/Author
Sterling Town Center Office
12900 Hall Road, Suite 300
Sterling Heights, Michigan
Office: (586) 751-0000
Fax: (586) 620-6449
Ralph Roberts is the author of many books:
- Flipping Houses For Dummies (Wiley Publishing)
- Foreclosure Self-Defense For Dummies (Wiley Publishing)
- Advanced Selling For Dummies (Wiley Publishing)
- Protect Yourself from Real Estate & Mortgage Fraud (Kaplan Publishing)
- Mortgage Myths: 77 Secrets to Save on Home Financing (Wiley Publishing)
- Foreclosure Investing For Dummies (Wiley Publishing)
Ralph also maintains Websites and Blogs:
- www.RalphRoberts.com (Ralph's real estate company)
- www.FlippingFrenzy.com (Ralph's blog about Real Estate & Mortgage Fraud)
- www.AboutRalph.com (Where anyone can learn more about Ralph)
- www.keepmyhouse.com/ (All about loan modifications)
- www.GetFlipping.com (A resource for house flippers)
- www.bignail.com (A public service from RRR to the Detroit Metro Community)
- www.KolleenRoberts.com (A tribute site to Ralph's daughter)
Remember every job is a self-portrait of the person who did it. Autograph your work with excellence. --Anonymous