5 Questions to Ask When Negotiating a Loan Modification,Nevertheless, the first half of the U.S. mortgage foreclosure is still the number of applications has created an all-time high, a large number of foreclosure sale of real estate housing construction resulted in a significant pressure, resulting in lower value of all property. In addition, the U.S. unemployment rate rising, but also pose a threat to the recovery of the real estate market. At present, economists generally expected the unemployment rate in the United States early in 2010 will exceed 10%.
Lately, due to economic circumstances, many people have been seeking loan modifications in order to lower their monthly payments and make their homes more affordable.?/p>
Unfortunately, there are those that have been taking advantage of this trend and preying on unknowing consumers. So, I’ve come up with a list of 5 questions to ask when negotiating a loan modification. Hopefully, these help you in making the best decision you can make.
1. How do you know if you can help me?
??- The basis behind this question is to get them to tell you as much about their process and past results that they have seen as possible. You’ll want to spew your?situation to them right off the bat, but resist that! The more information that you know up front the better. Also, you’ll likely be able to tell a sales man from a person that actually knows the business this way. A sales person will always take what you say and relate it. So, keep the information sparse until you fully trust them.
2. Do you have any references for your services?
??- Many times you will not be able to get these because of privacy laws and such, but it’s always helpful to ask. If the company you’re trying to work with can not?provide references for people that they have worked with, check online for and see if they have online reviews there. Know who you’re working with!
3.Will my terms be fixed and permanent?
??- It is very important that you end up with a fixed and permanent solution, otherwise you’re just delaying the inevitable. If you are having trouble making your mortgage payments because of a rate adjustment, or because your interest rate is just too high, and you’re also under water in the value of your home (owe more than it’s worth) it becomes pointless to temporarily adjust your interest rate, unless you plan on foreclosing sometime down the line. The chances that your home will become “sellable” within a short temporary fix are unlikely, leaving you asking for trouble in the future.
4. Does your company offer a money back guarantee?
??- Many lenders and third party companies, including attorney’s, charge up front fees for their services. Many times it’s very much worth the cost to have someone else handle the bank for you… but be sure that if they are unable to get a loan modification done that you will get a refund. Don’t just ask over the phone – GET IT IN WRITING.
5. How much do you charge?
??- Please note that this is not the first question. When relating cost to this type of transaction please realize that when you are refinancing a property you will be spending between 2-5% of the loan value to get the refi done. A loan modification is essentially the same transaction, only obtained in a different way and without the ability to pull money out of the equity (obviously, because you have none). So, expect fees in the $3000 – $4000 range. Cost is not the most important factor when trying to get your loan modification done, keeping a roof over your families head is!?/p>
5 Questions to Ask When Negotiating a Loan Modification,At present, there are many real estate builders are the United States real estate market is expected to have stabilization of revenues come mainly from California, Standard Pacific Corp is one of them. The company reported second quarter net loss of 23.1 million U.S. dollars, 11 for the second consecutive quarter net loss, but the loss is less than the second quarter of 2008 of 249 million U.S. dollars. The company’s revenue in the second quarter year-on-year decrease of 29%.
on Sep 18th, 2009 at 2:14 am
Requesting help in getting a Loan Modification with Wacoviah Mortgage who now has my loan.
on Mar 16th, 2010 at 1:00 pm
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