Searching the internet for foreclosure prevention services and knowing what websites and companies to trust is like finding a needle in a hay stack. There are many good companies out there but there also scam artists/ sharks that just want to feed on people when they are vulnerable.
So how does someone find legitimate organizations to help them? The best bet is to go with a non-profit HUD approved Housing Counseling Agency. There are also for profit organizations that are really good and have been successful in helping people deal with their mortgage companies and perform successful loan workouts and loan modifications.
Be proactive and make the calls you need to make and network with legitimate organizations. Avoid investor advice or I'll buy your home schemes. They only profit from you losing your home.
A loan workout is an agreement that is negotiated with your current lender that changes the terms of your current loan. Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. You must show the lender why it would be in the lender's best interest to agree to a workout arrangement. If convinced, a lender may be willing to reduce the loan interest rate, reduce monthly payment amounts or change other loan terms.
A loan modification generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations.
When applying for a loan modification, make a game plan on how exactly you are going to approach them. These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is un workable and foreclose on you. That is how they mitigate loss. If you understand this, then you'll know that you have to approach them and all conversations very carefully. Everything can and will be used against you.
more to follow...
Comments(0)