Loan Modification Myths Versus the Facts

Myth: Do you have to be late on your payments to get approved for a loan mod ?

Fact: No, you do not have to be late, but it helps. You will get more attention and help from your bank if you’re late.

I have seen it done many times when a home owner was not behind, but it is a lot more difficult.

If a person plans on trying it themselves get a thick skin to do this, as persistence is key. It’s not unusual for the mod process to take 3-6 months of calls, faxes, emails, letters and more to get help before you get relief. On average expect to spend 25 to 30 hours of your time and frustration.

If a person doesn’t have the time or energy to tackle the ever changing minds of the bank, contact an Attorney Backed mortgage modification Company as they can complete this process quicker and get better rates then you as a home owner could ever negotiate. The money is well worth it, as well as the sanity to know a professional with a team of loan mod blog will be acting on your behalf and harassing the bank for you!

Myth: Hope Now programs are here to protect your best interests.

Fact: Kind of.

I say “kind of” because they help mostly with counseling but they only go half way with their assistance for the struggling homeowners. This program does not yet have bank participating and it was rolled out in 2008. So the reality is that you talk to a government employee that is really going to refer you out to talk to someone else. In the end, the home owner may be better off contacting professional help in this area since the program is not fully functioning.

Myth: Your bank will give you a principle reduction on your loan.

Fact: Yes, this is true but not necessarily guaranteed.

This is usually done when a borrower has a 1st and 2nd mortgage and the 2nd is negotiated down or settled for less than is actually owed on the note. Obtaining a principle reduction on the first mortgage is much more difficult and there are no guidelines that state when one is warranted. The banks are being to do more of these reductions; however, there has been no word from the Obama Administration to enforce a principal reduction guideline at the lender.

These negotiations are very tricky and the best way to get it negotiated is to hire a professional that knows the in’s and out’s of the mortgage company mortgage workout. Just remember there is no guarantee of a principal reduction.



Myth: servicer are doing everything they can to assist struggling homeowners.

Fact: That is not true at all!

They are giving the media, our government and the people of this great country nothing but lip service. The same employees that made these loans are now laid off, and now these millions of loans are going bad. The mortgage company that sold you this bad loan is not really there to help you with a mortgage workout or really analyze your current financial position to see if you can afford a change in payment. First of all, mortgage company don’t have the staffing for it or the qualified staff to handle the business, nor do they really want to.

In most cases, the bank denies the home owner the mod or barely lowers the interest rate. In turn, 5 to 6 months down the road the homeowner will re-default on that loan that was just modified. Now, this should make every home owner think, what is going on. It is obvious that the lender are protecting themselves, only to keep the home owner paying so that the lender is not flooded with foreclosures and crash the banking system. However, the price for this is millions of people hanging on for dear life, unable to afford their payments, and the bank taking the last few dimes from the home owner. The home owner is then left with nothing at the time of foreclosure to move and is then found on the streets or calling family and friends for help.

ALMS have contracted with Attorney’s that have experience and will represent you with your bank. These Attorney’s have the relationships and have been conducting modification business with these servicer for years and know how to get the best modification possible. All modifications are 100% guaranteed! No money is collected up front! We are always more than happy to provide documentation of successful mortgage workout to potential clients. For immediate assistance, please fill out our mod inquiry form (http://www.callalms.com/secure-online-application). This will provide us with the basic information we need to evaluate your situation and begin the modification process for you.