Although you may obtain a mortgage modification loan by following the guidelines, there are certain technical areas and tactics which only expert companies that are engaged in that field are fully aware of and are able to find the best bargain for the homeowner.
Loan workouts or loan modifications are happening in record numbers and the pity is that only is the educated homeowners avail the relief on their mortgages and save their home.
There are two options of handling the issue of mortgage modification loan. One is that the homeowner himself may look into the formalities and the other is to entrust to the relevant companies, having proficiency in this area. Both the systems have their own advantages and disadvantages.
If you decide to do the processing yourself, you may learn to understand the details from the loss mitigation department of the concerned bank or financing institution and carefully prepare the documentation in a professional way and submit the same. Here, the hitch is that there are some minute details like debt ratio, net present value test, etc., where the experts themselves may get misled. Since it is case of life and death, it is better the case is handled by some experts, accustomed to deal with similar situations.
Once such a decision is taken to depute an expert company, the problem then is a careful selection of the concerned company. There are many companies and persons fishing in the troubled waters. Ensure that the agency you select has the following qualifications:
Verify their testimonials through some reliable sources and some homeowners who have got success stories through them. Ensure that it has a hands-on experience in dealing with the cases of similar nature successfully. You can confirm this at the very first dealing with them. Here also, somebody pose to the real and ultimately the homeowner gets cheated.
It should have compassionate caring attitude, coupled with honesty and integrity.
There have been cases when the mortgage modification loan was declined when the homeowner contacted and the same was sanctioned when the servicer presented the case. All cases under loan modification program are not similar and every case is unique and different and requires a separate treatment.
This program is free to qualified homeowners and the Treasury Department is warning borrowers against paying anyone a large fee to apply.
Many agencies provide free evaluations for cash for houses Houston. If the agency asks for fees initially, better avoid it. In most cases, they charge a fee once the agreement has been reached or application is submitted to the lender. The fee for a successful modification is usually between 1 and 3 percent, while some charge fess varying anywhere from $200 dollars to $3,500 dollars. There are certain companies which have a policy not to charge anything if ultimately the case is turned down. Certain good companies do not also give false promises once they ascertain from the facts and circumstances of the case that the eligibility criteria cannot be met.
Some borrowers, for reasons best known to them, besides being counseled, prefer to be represented throughout, till the deal is successfully materialized. Under such circumstances, these modification specialists charge in the range between $2500 and $4,000. There are companies which give refund of the fees, if they are unsuccessful in putting through substantial modification of the mortgage terms, in favor of the borrowers.
Most of the agreements on the face of them seem innocuous, but in real terms, they are in favor of the lenders only. Established companies in these areas have on their rolls former bank underwriters, legal persons and quality control supervisors who can identify violations on just a glance of the documents. Once these violations are identified, it is fit case of modification loan. They will help the aggrieved homeowners in the matters of tax implication, credit report, credit rebuilding, deficiency judgments, etc.
Some companies take up only such number of cases as they can handle and do not undertake any overload. Whereas scam companies accept any number of cases, even the seemingly unsuccessful ones from all quarters with result that there are more of failures, compelling the poor homeowner to the corner.
It takes 60 to 90 days to get the modification. Some scammers say it can be done in about a month’s time, though they know very well that it is not actually possible.
If you select a good company and entrust the mortgage modification loan process to them, even though the fees may be higher you stand a good chance to get it paid back in a shorter period through their bargaining power in getting things done for you, of course within the ambit of the extant guidelines.