What does a loan modification cost?
The prices vary for a loan modification and some cost nothing. Those who choose to conduct their own loan modification without the assistance of a manual or loan modification company, save the cost of these services. However, the down fall of conducting a loan modification without having extensive knowledge of the process is that the borrower may be unsuccessful, and not have another chance at getting a loan modification. Remember this is a very important decision that does not only impact whether or not you stay in your home it impacts your entire family.The department of Urban Housing and Development also offers free financial counseling and can assist you with the loan modification process as well. There are also a number of loan modification companies, however, they do charge for their services, which vary in cost. Some companies solely have bankers, mortgage experts, and attorneys where as others have a diverse team of attorneys, mortgage brokers, bankers and realtors on staff. Modification companies that have an attorney on staff or are made up of only attorneys are usually the most costly. Their costs range from $5000 to $7000 depending on the extent of their services provided.
Attorneys are usually not necessary in a straight forward loan modification. However, if you are denied from your borrower and risk your home going to foreclosure, and think you are eligible for a loan modification, then contact an attorney. An attorney can also help you file for bankruptcy if need be as well. Loan modification companies that have a diverse team on board are the most cost effective in terms of success rates. The costs of these services vary from $1500 to about $5000.
A company that is legitimate and confident in their abilities will not ask for all the money upfront. These companies have staff that is equipped with the most up to date information on the mortgage and banking industries in addition to ever changing loan modification requirements of financial institutions. For those borrower's who do not have the financial resources to retain such services there is always do it yourself manuals, which range from $85 to $200. Although each will vary in price, the general contents will be the same. Each should provide information about what options are available to you, and how to proceed with each. The bulk of the manual will focus on how to put together a loan modification package. The manual will provide you with step by step instructions and the order for which documents should be prepared.
Your Basic Guide to Do-it-Yourself Loan Modification has received very positive reviews for its ability to explain in laymen terms what is expected of the borrower and also what to expect from the lender. Using a do it yourself manual is the most cost efficient method to ensure a successful modification. Nevertheless, regardless of what method of assistance you use to conduct a loan modification there are no guarantees.