Do Your Own Loan Modification, Why Pay?

I hope my blog reaches as many strapped homeowners as possible. If you live in Florida and are looking at trying to save your home from foreclosure you have options.

First, you may contact your lender or if your lender hired a company like Titanium Solutions (Countrywide, WAMU and Litton) to facilitate a workout, assemble the required docs yourself. This is no mystery on what the lender/servicer typically needs from borrowers but I will cover what I see typically requested:

Borrower Hardship letter, financial worksheet, last two paystubs, last two most recent bank statements, w-2's, last two years tax returns. Ok, why a company would charge someone $$ to assemble your paperwork is beyond me. DO IT YOURSELF. The catch here is you have to have income to show the lender you can afford the modification. Any company who claims to be able to work a loan modification and charges you an advanced fee is out of line. Each servicer and investor for your loan has a different requirement. Don't think for one minute that these are cookie cutters and work smoothly because they are difficult. Put as much time into working out a loan modification as you did getting the loan in the first place.

Lori Young, Realtor and CDPE