Ten Steps to Negotiating an Affordable Loan Modification
Detroit, MI - February 12, 2009-
Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, LLP, today released his list of the top ten steps homeowners can take in order to negotiate an affordable loan modification. The following steps apply to homeowners working directly with a lender as well as to those teaming up with an attorney or alternative third-party representative.
Come clean -
Understand your lender's point of view -
Keep a cool head -
Give them what they need -
Ask for what you want -
Let them do their job
Get your financial house in order -
Keep everyone posted of any changes -
Make sure the lender's offer is truly affordable -
Hold up your end of the bargain
- The key to success is discipline and commitment. All the effort you spend setting up a plan is of no use if you don't follow the plan you created or agreed to.If the loan modification is unaffordable or makes your budget so tight that you are only one car repair or medical bill away from defaulting again, head back to the negotiating table to try to work out a better deal.If anything changes related to your financial situation, be sure to keep your loan modification representative or lender in the loop.Put a tracking system in place today and start developing a budget to ensure you are not spending more money than you are earning.- Loan modifications typically take between 30-90 days from start to finish. During this time, avoid the temptation to micromanage the process. To alleviate unnecessary anxiety, ask your lender for an anticipated timeline. Before meeting with your lender, make sure you spend some time figuring out what you want and need. For example, how much can you realistically afford to pay each month? In order to expedite the situation, find out exactly which forms you need to fill out and which documents your lender needs to process your application. Make sure you provide everything to your lender or representative in the manner specified.Expressing anger toward your lender puts you in an extremely disadvantageous position. For example, your lender may decide that you are unreasonable and that foreclosing would be less costly overall.As far as your lender is concerned, it all boils down to money. You are most likely to be approved if you can show modifying your loan will cost the lender less than a foreclosure. It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Only by laying all your cards on the table and disclosing the truth can you begin to develop and implement solutions that will put you back on the path to long-term financial health.
To read Ralph's full article on this and other topics, please visit www.keepmyhouse.com.
My latest book, Loan Modification For Dummies (Wiley), is slated for publication in summer of 2009
Ralph R. Roberts, CRS, GRI
Loan Modification Expert/Author
Sterling Town Center Office
12900 Hall Road, Suite 300
Sterling Heights, Michigan
48313-1150
Office: (586) 751-0000
Fax: (586) 620-6449
Email: RRnail@Gmail.com
Personal Assistant: Lois Maljak (LoisMaljak@RalphRoberts.com)
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.GetFlipping.com (A resource for house flippers)
- 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
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