If you are considering applying for a loan modification you may be wondering how much it may cost you. Actually a loan modification can cost you thousands of dollars all the way down to absolutely nothing if you negotiate your own loan modification.
There are many loan modification companies who will offer to negotiate a loan modification for you. As loan modifications have become more prevalent, so have loan modification services. The companies offering these services range from experienced professionals all the way down to scam artists, so you will need to do some upfront research before hiring a company to represent you. Loan modification services are fairly new so many of these companies will not have a lot of experience. Many mortgage brokers and realtors are getting into the business of loan modifications, so you will need to check their credentials and their experience with loan modifications. Many of these services charge an upfront fee with no guarantee that your loan modification will be approved. A legitimate company will not guarantee a loan modification and will not charge the entire fee upfront. The fee is often several thousand dollars.
There are also attorneys who can represent you in a loan modification negotiation, but they tend to be even more expensive than the loan modification companies. The cost for these services could be $5000 or more Hiring an attorney is usually not necessary for most loan modifications. However, if you feel there was any fraudulent activity during your loan origination process an attorney may be able to help you.
For borrowers short on funds or who just want to save money, a do it yourself loan modification is very possible. Thousands of borrowers have successfully negotiated their own loan modifications by contacting their lenders directly. There are loan modification kits and manuals for sale that you can buy to help you become familiar with the loan modification process. The cost ranges from $50 to $200 dollars. Or borrowers can just learn everything they can on their own without the aid of a kit or manual.
No matter how you decide to approach a loan modification, you need to become familiar with how the loan modification process works and do research on any company or service that you are considering to represent you. You will also want to become familiar with your lender's eligibility requirements and what documentation you will need in order to submit an accurate and complete loan modification application. A loan modification can save your home from foreclosure and save you thousands of dollars on your mortgage, so it pays to look into all your options and choose the one that gives you the best chance of negotiating a successful loan modification.
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