Loan Modification...What Is The Best Option For You?

When considering a loan modification, homeowners have several choices available for the processing aspect of the modification. You can do it yourself. You can retain the services of an attorney, or you can retain the services of a professional loan modification company. There are pros and cons to each of these choices like any other situation in life, and it is best to understand these three options so you can make an informed decision that best fits your needs.

You can do the loan modification yourself. If you choose to do the loan modification yourself, you need to be prepared. First, have all your paperwork ready. Check with your lender to see what they require. They all will require basic financial information such as; bank statements, W-2's, and tax returns, etc... You should also review these documents carefully to understand your current situation. After that, contact the bank to initiate your first conversation to see if you qualify. If you do, you will have to write a hardship letter that can be documented...one that is brief and factual. Always include in this letter how you plan to pay back the loan. You must be prepared to spend a lot of time on the phone. Lenders are not so apt to want to deal with the homeowner, as they have the position of power, and the homeowner is usually very stressed and nervous, due to their financial situation.

You can retain the services of an attorney to assist you through this process. They typically will require a retainer of at least $3500.00 to take your case. This maybe a good idea if you are concerned that there is something wrong with your loan...either a RESPA or TILA violation. Any loans taken out from 2005-2007 could have structuring problems that would cause the validity of the mortgage to be questioned. Attorneys understand these issues and can advise you on your particular mortgage. However, to the budget of an already cash-strapped family, this might be more than they can tolerate financially.

A professional loan modification company gives you a more cost effective alternative. They will handle the paperwork as well as all negotiations with the lender. At our firm, we ask that the client say nothing to the lender...only that they have retained our services and that all communication needs to go through us. Overall, professional loan modification companies make the process much less stressful for the client, is a more cost-effective alternative to attorneys and creates an environment where the client feels safe and secure. The downside is that there are a lot of unscrupulous individuals out there to take advantage of the public. Do your research. Be Empowered...ask for referrals. Check with your state to see who has jurisdiction over loan modification. Find out if the firm you choose to retain has had any complaints registered against them.

We have sat and spoken to various bankruptcy attorneys on numerous occasions. We asked them what they do differently than what we do to assist the client with loan modification. The answer is always the same. We were always told that we do the same things that attorneys do...who charge significantly more for their services.
At Credit Capital Solutions, we have an attorney on staff. We have strict protocols to protect the client. We do not take money up front...as many firms choose to do. In Nevada, it is against state law for a loan modification professional to take money up front for services to be rendered. Only an attorney can do this and it is in the form of a retainer.

Whatever way you choose to move ahead with your loan modification, make sure that you understand the facts, your options, and potential negative ramifications. Make educated and informed decisions...Empower Yourself!