We often speak to people who wish to try doing a loan modification on their own. While we don’t discourage them from trying, we caution people against the many pitfalls. If it’s something you are going to do, make sure you are ready to handle the difficulties below. You can apply on our website to get in touch with quality legal representation.
Questions to Think About If Doing a Loan Mod on Your Own
- Are you prepared for the long, drawn-out process? Lenders take upwards of 4 months in many cases and sometimes longer to come to a decision. This is going to require a lot of your valuable time.
- Are you properly representing your financial situation? I’ve personally seen people try this on their own and get turned down because they didn’t do their financials correctly. If you don’t know what the lender is looking for, it is very easy to get rejected on account of a poorly constructed financial worksheet.
- What happens if the lender says no? You might get to the end of the process, put together a good case for yourself and still get turned down. What do you do? No isn’t the final answer and you have to pursue a result to the dying end.
- Do you know how to explain your hardship? Like your financial worksheet, a poorly constructed hardship is a major reason people get declined. You have to craft a convincing letter that is true to your situation and describes why you are struggling to pay your mortgage.
- Can you get around the collections department and others at the lender that don’t have your best interests in mind? A lot of the time, people call up thinking they are getting loan modification help and end up with a collections agent whose primary goal is to get you to pay everything you owe right now. It can be very frustrating. Third party companies have all the inside contacts at your lender and can get right to your loan modification case.
- Are you prepared for a disorganized lender? The submission process itself can be a nightmare if you don’t stay on top of it. It can take a long time for a lender to even assign it to someone and it’s very easy for you to get lost in the shuffle.
If you find the process too difficult and have questions, you can apply on our website.
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