Things You Need to Watch Out for When Applying for a Loan Modification by:Bridget Toomey


Things You Need to Watch Out for When Applying for a Loan Modification by:Bridget Toomey

With over 3-million American families currently behind on their mortgage and facing foreclosure, there has been a huge increase in the number of mortgage loan modification applications filed over the past year. Almost all homeowners realize that getting a loan modification is probably their best option when it comes to saving their homes. Hence, a lot of them have gone ahead and filed their applications but have then ended up facing a series of issues or problems.

One of the biggest problems faced by homeowners is loan modification scams. Since there are millions of families who are trying to get their loans modified, many individuals or even companies have taken note of the enormous business opportunity in providing loan modification services. Unfortunately these individuals have decided to take advantage of the precarious situation the homeowners find themselves in and have cashed in on their problem. Instead of offering a genuine solution and a way forward for getting loans modified, these companies charge a huge upfront fee from the homeowner regardless of whether the loan is modified or not. Once the homeowner, who has little option but to pay the upfront fee signs up, the company literally either runs away with the money or makes some excuse after a few weeks that the loan modification application was rejected and keeps all the money for their initial services.

Homeowners who are aware of such companies who take upfront fees without actually getting the loan modified have recently started falling for another trap. Now the same companies have started saying they won’t be charging any fee until the loan modification applications are approved. But instead of getting the applications approved by the bank, these companies tell the homeowners their own lawyers and loan processors have approved their application and they need to pay a fee before the application is forwarded to the bank. Needless to say, whether the companies own lawyers or consultants approve of an application does not make any difference to the homeowner’s situation. It is only the bank who can approve or reject an application and only once they approve a loan modification will the homeowner’s mortgage be modified. Hence, homeowners are advised to make sure that they do not pay any kind of fees unless and until their bank or mortgage lender themselves approve of their loan modification application.

The other huge issue faced by families while applying for a loan modification is that of long delays in communication by the lenders. Mortgage lender employees responsible for processing loan modification applications and answering queries of homeowners lack the sense of urgency and often it is seen that it takes weeks to get a single question answered. Even if you somehow get all the information you are looking for and then apply for a loan modification in the prescribed manner, you have to again wait for months at a time to know the outcome of your application. During this time, you have to follow up with the lender countless times and not only is it time consuming but extremely frustrating for a homeowner as well as they do not know if they will be able to save their home or not. Things You Need to Watch Out for When Applying for a Loan Modification by:Bridget Toomey

Apart from this, filing a loan modification application without the appropriate documents is also a huge problem. Even if one important document is missing, mortgage lenders will end up rejecting your application and continue with their notice of foreclosure. Homeowners must make sure they have each and every document made available for their lender to review. They should find out about these documents either from their lender or from a qualified loan modification consultant who will help them with the entire application process without charging any fees until the loan modification application is truly approved by your mortgage lender.

About the author

Bridget Toomey is the founder of The Loan Modification Foundation, a home loan modification company backed by attorneys and real estate consultants specializing in loan resolution and modification services. We guarantee no fees until your Loan Modification is approved by your mortgage lender.

Article Source:

http://www.articlecity.com/articles/business_and_finance/article_10949.shtml


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