I've had more and more clients look into loan modifications these days.
In my research, I have spoken to quite a few lenders and mortgage brokers to gather information.
Recently, I spoke directly to a loan modfication representatative that works for an organization that charges $3000 for their services.
Basically, they will refund the fees entirely if no modification at all can be accomplished. But that's almost impossible to acheive no modification at all. Almost any lender right now is willing to negotiate SOMETHING to keep their assets going and keep the borrower going with their payments.
So what if the loan modifier obtains a 1/10 of 1% deduction in the interest rate? Well, that would qualify as a modification, so you can kiss your fees good-bye.
Oddly, you can acheive just as much on your own with a direct dialogue with your lender. And especially now, more lenders already have a loan modification package ready to go for the property owner to fill out and start the process.
BUT, I DID GET SOME INSIDE SCOOP! One of the things that caught my attention, was the loan modifiers explanation of using attorneys during the process. They explained that they use attorneys to order the original note (see my "Show Me The Note" Blog entry for more on this) and go through the original loan contract with a fine tooth comb. What the loan modifier explained is that if the attorneys find ANY errors or ommissions in the original contract, that it would give them a HUGE amount of leverage to get the lender to modify the loan greatly in favor of the borrower. Perhaps even elminate a substantial amount of the loan principal in some cases, according the the loan modifier. I guess the threat of holding the errors against the lender has quite a bit of weight.
But you really can do this on your own, especially with the assistance of your realtor. And it really helps if your realtor is experienced in the areas of loans, finance, short sales and foreclosures.
Now, play nice.......................
