Loan modification companies ("LMCs") provide their clients with valuable services and are contributing to helping solve the foreclosure problem in the United States. A good loan modification company can help you stop foreclosure and save your home.

Why are we not hearing this? Well, the answer is that there’s not a lot of good press out there about companies that help consumers get a loan mod. In fact there’s nothing but bad press out there about companies that help people get a loan mod. The federal government and the media all say don’t hire a LMC, you can do this yourself. Don’t pay someone to get something that you can get for free. Go to a HUD approved non-profit credit counselor for help. This is the type of press we hear out there about LMCs.

I am going to add some good press about loan mod companies with this article.

Here’s some reasons why people should hire LMCs to handle their loan mods:

When you call the loan servicer, you will have to stay on hold for long periods of time before you will be allowed to talk to a live person. Most of us work and do not have the time nor the patience to stay on hold to talk to some hourly clerk in the collections department who does not have any authority to help us. LMCs have the time, patience and know-how to navigate the automated phone systems and to get the right person on the phone to help.

When borrowers get through to a live person they are being offered forebearance options (catch up plans) rather than true modification of their loans. LMCs act as advocates and can take the immediate position that their client will not accept anything less than a fair and reasonable loan mod.

A successful loan mod handled properly can keep a borrower in their home and help them avoid foreclosure. A borrower who calls once or twice and gives up when he or she cannot get through to someone who can help them will likely lose their home in foreclosure because they did not have an advocate handling their case.

The free HUD counselors cannot provide you with the dedicated we won’t give up attitude and service of a LMC. LMCs have dedicated staff with established follow up procedures and timelines to make sure that each client’s case is getting the attention it deserves.

Author:

Ken J Block is a mortgage professional and attorney at law

You can follow Ken Block on Twitter at http://www.twitter.com/kjblock

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Have you been notified by your lender that your house payment is overdue? Perhaps you are 2 or 3 payments behind, and the lender is threatening you with foreclosure on your home. You are not alone in this situation. In today’s difficult economy, many homeowners are in the same boat.

You may have fallen into this situation due to an unexpected financial hardship or the loss of your job. Whatever the reason, it is possible to stop foreclosure quick, if you take the appropriate action.

This involves responding without delay once you are notified by your mortgage lender that your payments are overdue. The sooner that you take steps to work with the lender, the more likely it is that they will work with you.

There is more than one way to stop foreclosure quickly. If your financial setback was temporary, and you now have adequate income, a forbearance agreement might be the simplest solution. This is a short-term plan whereby your lender agrees to accept a portion of the back payments now, and then the rest over the next few months. Keep in mind that these make-up payments are on top of your regular house payment each month. You may have to make a few sacrifices elsewhere in your budget, but if you have a steady income this is probably the quickest way to clear up the problem and avoid foreclosure.

Other possible ways to stop foreclosure quick include getting a short refinance loan, signing a deed in lieu of foreclosure, or negotiating a loan modification.

A loan modification seems to be the best option for most homeowners who want to keep their home, because it typically involves lower monthly payments. This requires a permanent change in your mortgage terms whereby the lender either agrees to reduce the interest rate on the loan, or they extend the total repayment period so that your monthly payments are brought down to a level that you can afford.

Loan modifications have become very popular. The good news is that thousands of homeowners have taken advantage of a loan modification to save their home from foreclosure. The bad news is that, most lenders now have a considerable backlog of non-performing home loans, and can be slow to respond to your calls and letters.

It is easy to understand the frustration of many homeowners over their failed efforts to work out an agreement with their mortgage lenders. They often find that they are bounced around from one person to another, speaking to someone different each time they call. The problem is that most of the people you talk to are reading from a script, telling you to send X dollars. But, they don’t have the authority to actually change any of the terms of your loan. You may find that, after sending in the payment you were told to, the lender continues with foreclosure proceedings anyway.

Even if you do manage to reach someone in authority, and you succeed in negotiating a loan modification agreement, it will be a rather long process. You will need to submit documentation, review, notarize and execute new loan documents, and oversee the entire transaction through escrow.

With all of these things in mind, you might want to consider enlisting the help of a loan modification expert. Experienced professionals have already dealt with most of the mortgage lenders so they know who to contact to get things done. They have the expertise to go to bat for you in negotiations with your lender, possibly saving you thousands of dollars over the life of the loan. Having all the details attended to can lift a huge burden off your shoulders, and may provide the most efficient way for you to stop foreclosure quick.

Author: James Sopher

James Sopher is a retired real estate professional and free-lance writer.

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