A Loan Modification Could be Your Best Bet to Avoiding Foreclosure!

As a realtor in Westchester County, NY, one of my most frequent requests is from distressed homeowners wanting to know if it is possible to modify their mortgage. These homeowners are usually everyday people, now holding distressed property because their adjustable rate mortgages have ballooned beyond their expectations. This of course has led them to juggle monstrous monthly payments that have escalated far past the point of difficulty and have thus become delinquent. Securing a loan modification is an excellent way to avoid foreclosure, even if you owe more than the home is worth.

Loan modification isn’t easy. It takes a skilled realtor with mighty moxy, resolve, and more than his fair share of salesmanship to turn a loan modification from request from a client to an improvement in their lives. Be careful about hiring a loan modification company rather than an experienced realtor. A loan modification company may ask for an upfront fee to negotiate a loan modification for you. This is not a good deal, however. No one can guarantee success when it comes to loan mods and it may end up costing a month’s mortgage for nothing more than an empty wish.

The first step in the loan modification process is to contact your mortgage company. Countless borrowers are unwilling to pick up the phone and contact their mortgage company even when facing down foreclosure. Don’t be one of them! Call a realtor or do it yourself, but by all means don’t allow your window of opportunity to close without effort. Ideally, you will enlist the services of a professional to help guide you through the process.

The loss mitigation department is the arm of the lender you will be working with. Since foreclosure is in no one’s best interest, the lender might be willing to work with you so long as they believe there is a genuine possibility a loan modification will be an alternative to foreclosure for your distressed property. If the lender determines that you will still be too deep in the red even after a loan modification, your chances of approval will plummet to zero. Again, this is why hiring a professional is the best course of action.

Whether you hire an expert or are doing all the negotiations with the lender yourself, make sure that you document your efforts. Take note of who you spoke to and when. You may need this data at some point in the future. If you have a distressed property in Westchester County, NY, I’m the realtor who can help reduce the stress of your distressed property.

There are no comments yet. Be the first and leave a response!

Leave a Reply

Wanting to leave an <em>phasis on your comment?

Trackback URL http://westchestercountyhomenews.com/a-loan-modification-could-be-your-best-bet-to-avoiding-foreclosure/trackback/