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I attended a wonderful class about loan modification yesterday, in conjunction with the latest Making Homes Affordable Plan, put in action by President Obama. Here are some helpful Do’s and Don’ts that you should consider if you are seeking a workout with your lender. Remember to always do our research and seek validation or anything that a third party is promising they can provide or accomplish for you. ALWAYS check with your state agency to make sure your company is licensed and bonded.
What you DON’T want to do…
Don’t stop making your mortgage payments on the advice of anyone excepted a retained real estate attorney. Withholding mortgage payments as a negotiation tactic is very risky and can result in you loosing your home to foreclosure.
Don’t pay an upfront fee to anyone if your lender has recorded a notice of default. These are usually scans that promise they can save your home, and can’t.
Don’t get “sold” on a workout solution. making the choice to pursue a workout with your lender should be an educated decision. If a sales person is pressuring you, especially a commission based sales person, you should be leery of their true interests.
Don’t hire a Loan Modification company that is not a Licensed Brokerage or a Law Firm. Most states govern Loan Modification companies through State Finance, Real Estate, or State Bar. Making payments to anyone other than licensed professionals can result in you loosing your money without any recourse.
Don’t avoid calls from your lender. It is important that your lender know your intentions to keep your home. Think about it, why would a lender want to work with you if they get the impression you ultimately do not want to stay in your home? Make a point to call your lender or take one of their calls every couple of weeks or so.
Don’t do business with a Virtual “online” company. All legitimate businesses have a physical address and clearly post it on the contact pages of their websites. Protect yourself by never giving out your information on one of these sites.
What you DO want to do…
Do keep in contact with you lender even if you are not able to make a payment. Homeowners that “go dark” on their lenders are less likely to receive any help and may speed up the lenders desire to foreclose on the property.
Do get legal advice before you do anything that could have permanent repercussions including waiving any of your legal rights in exchange for an agreement with your lender.
Do educate yourself on the process.
Resources:
Call a member of the Conklin Team today to learn more about modifying your existing loan, negotiating a short sale with your lender, or the ramifications of foreclosure.