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Facts & Myths of Loan Modification

Because of the ongoing global economic crisis, many people are facing problem in repaying their monthly debt bills. For the people who have just lost the job or are working with reduced financial gains, loan modification seems as the only source of immediate relief. As the mortgage assistance market is growing fast, the number of misinformed property owners are also increasing. This write-up is aimed at presenting the proven facts discarding misleading yet popular myths so that readers may take right decision.

Myth #1: We can do it ourselves without external help…

Technically, yes, you can accomplish loan modification task successfully but it needs a lot of paper work, liaison work and regular follow up visits. Each of these activities needs a high level of perfection. Loss Mitigation is the bank’s busiest departments, so the employees of this department rarely have time to give an ear to what you are saying. So, you start losing on both fronts- time and money. When you represent your case though a reputed loan modification expert like Service Loan Modification, they pay proper attention towards your case because of professional reputation and linkages. So, it is always better to hire loan modification experts to speed up loan modification proceedings.

Myth #2: Lender prefers to foreclose than to modify loan rate.

It is purely a myth. With every foreclosure proceeding, lenders lose considerable money and their customer acquisition efforts go waste. Banks already have too many foreclosure properties and the bank seniors don’t want to increase the number of non performing loans in their books. That’s why, bank officials generally modify loan rate, if the case is presented in a proper manner.

Myth #3: We can’t stop the foreclosure process.

In some cases it is true but in most of the cases this stage comes only when borrower intentionally ignores seriousness of this process. Foreclosure process can definitely be stopped if the action is taken well in time. Loan modification request can stop foreclosure process as close as seven days before the auction date. By placing an application for loan modification through your lawyer, you get sufficient time to analyze your probable payment options.

Myth#4 Most loan modification experts take money but don’t do anything concrete as per expectations.

Though there may be some such professionals in your town but it is you who are solely responsible for the selection. Always selected reputed and trusted loan modification experts like Service Loan Modification, who have a great, verifiable record of success with loan modification cases of hundreds of clients.

Myth #5: We must have good credit rating to qualify for loan modification.

Generally, credit rating is not considered while deciding loan modification. Lender just needs to prove that the failure in repaying was because of a temporary reason and she/he can pay the modified debt bill without gap.