Why do I dislike loan modifications?
It starts out as a simple request. You ask the bank to modify your home loan because you got behind or cannot afford payments any longer. Maybe you were sick for a while, went a few months without a paycheck, or had some unexpected expenses.
If your mortgage company were a person they would understand, and do their best to work out a fair and reasonable solution with you that resulted in a new payment you could afford.
Simple enough, right? Wrong!
Most times your mortgage company will not start a loan modification until you are 3 months behind on your mortgage payments.
But guess what? The loan modification department and the foreclosure department do not talk to each other. Once your behind on payments, they will begin the foreclosure process.
Now begins the race against time to get all of the paperwork together to complete your loan modification. The loan modification department may lose your paperwork many times. They will delay for months without explanation. Your loan may get transferred to a mortgage servicing firm without your loan mod paperwork. And if you try to resume making payments they will not accept them. Oh, and they won’t tell you that your loan modification needs to be completely approved at least 3 weeks before the foreclosure in order to stop it.
In the end, odds are very strong that your request for a loan modification will get denied. My team and I have found that less than 1% of loan mod applications are approved. And even if you are approved, if you’re late on a single payment, the foreclosure process picks up right where it left off.
The sad truth is that for many people, loan modifications turn into a foreclosure trap. And since foreclosure is the absolute worst thing you can do to your credit, you’ll want to avoid this trap at all costs! All that being said, you absolutely should contact your bank as soon as you start falling behind on payments.
However, there is hope. We can help you and provide you with options the banks, attorneys, and real estate agents will not tell you about, in the form of our unique Loan Modification Backup Plan.
Here’s how our exclusive Loan Modification Backup Plan works:
- We make you an offer on your home and write a contract. This contract will include the amount we will pay for your property and will show you how much you will receive in cash should we close on your property.
- We help you work with your bank to delay foreclosure for as long as possible. Having a contract in hand may help you negotiate with the bank and may increase your chances of a successful loan modification.
- The contract will include a provision where, if your loan modification is successful, the contract with us will be canceled and you will owe us nothing. As a matter of fact, this entire process costs you nothing, so be careful about spending money on an attorney or other firm that requires money from you up front and doesn’t guarantee results.
- If your loan modification fails, we will buy your home, pay off the bank, stop the foreclosure, and give you a check. This will save you from the huge credit hit foreclosure causes and will also immediately boost your credit. Again, no money is needed from you.
- After this, we will discuss your future plans, including a lease-back option so you can move when you’re ready. We can even help you find a more affordable home and give you a fresh start!
So, please don’t fall for the loan modification trap. If you’re behind on payments, considering a loan modification, or have already started one, please give us a call.
PLEASE NOTE: Because our Loan Modification Backup Plan is unique, requires a lot of time, and costs us a lot in up front costs, we can only offer this plan to a few clients per month.