Is a Loan Modification Right For Me?

The trouble with most loan modification companies is not their fees. In fact, since October 11, 2010 it has been illegal for any company or attorney to charge up-front fees for loan modifications. As such, fees are only charged when a result is achieved.

The problem with most modification companies is that they do not ask the more important question ... Is a loan modification RIGHT for this person or family? Can the homeowners afford the new, modified payment? How long will it take for the homeowners to recoup their lost equity? Does it make sense to hold on this an asset that is underwater and may cost twice as much as comparable rents? Sometimes, the simplest question is - Would I pay $500,000 for this house today, knowing it's only worth $325,000 even if the interest rate was better?

The answer to these questions may lead the homeowner back to a successful loan modification. Of every 10 people with consult with, we find the following:

• 1 of 10 are good candidates for a loan modification and we help them get one
• 2 of 10 pursue a loan modification because they are emotionally attached to their home or feel the sense of "ownership" even though there is no equity in the property.
• 6 of 10 pursue a short sale because of the tax incentives, liability release options and credit benefits over a foreclosure, plus they may be able to buy in a few as 24 months.
• 1 of 10 are paralyzed, cancel our appointment, do nothing and allow their home to go to foreclosure. Don't let this happen to your family or friends.

When facing any real estate decision, you need a team of professionals. When facing negative equity, you need the advice of an experienced bank negotiator, real estate broker and CPA. For legal questions, you should consult a real estate and/or bankruptcy attorney.

Nancy Moeller, CPA, Real Estate Broker

License #01727426

www.RecreateTheDream.com

www.TheOCExperts.com

Direct: 714 276-7006

The counseling team with Re-Create The Dream consists of a bank negotiator, real estate broker and CPA available by appointment to review all possible work out options and help homeowners execute a strategy that leads them back to their dream of homeownership with equity. The one-hour consultation is free of charge. For homeowners who are candidates for a loan modification, the bank negotiator will also handle the modification free of charge.

To schedule your appointment, contact Nancy Moeller at 714 276-7006.