Loan Modification Stepscosts
Loan Modification Stepscosts: What you should know
When looking for places to find out the loan modification stepscosts, most consumers do exactly what you are doing right now. They go online and do as much research as possible to try and determine the best way to proceed when it comes to applying for a home loan mortgage modification and to determine your modification stepscosts. After all, there may be the potential to reduce your monthly mortgage payments by up to 30% or more, so it is important to learn about all the steps and costs involved in the process. But what it comes down to is, you really only have two options:
- Hiring a professional loan modification company or a loan modification attorney or
- Doing it yourself..
Let's quickly look at each one of those options:
Considering that the economy has changed so much in the past few years, you won’t have a difficult time finding professional loan modification companies as this industry becomes more and more popular and much more competitive. So the question comes up, what the loan modifiaction stepscosts are. Typical fees for professional services run between $2,000 and $3,000. Many times the money is collected upfront before the work is done. Due to several loan modification scams, the government has recently changed regulations making such practices of collecting money upfront much more difficult for any kind of loan modification company. If you decide to use a professional service, follow these basic steps first:
- Find out the cost involved and ask if there is a money-back guarantee if your loan modification is unsuccessful.
- If the company does not offer a money-back guarantee, I would keep looking as you are investing a lot of money for an outcome that is unknown.
- If you think you have found a loan modification company that you feel comfortable with, the next and most important step would be to check them out with the Better Business Bureau..
Many loan modification companies were only recently created within the past 12-24 months. In addition - and unfortunately - several of these companies already have poor ratings. It is doubtful that you will be able to find a company that has been established more than two years. However, it is more important that the company you choose has an A rating with the Better Business Bureau. If they don't, keep looking. For more information on this topic you can also refer to our page about loan modification scams.
Once you have found a company who's rates seem reasonable and a money-back guarantee is offered, proceed cautiously. Gather all of your financial information and simply follow their instructions. Remember, regardless of what representations the company will make to you, it is never a guarantee. The bank will ultimately make a decision on your modification. Speaking of guarantee, if your home loan modification is not successful, don’t expect to receive 100% of your money back. It is typical - and customary - for these companies to retain approximately $500 for processing in the event that your modification is not approved. So you are really just paying these companies to call the bank on your behalf with them giving you a bit of guidence of what data to collect before they call. Keep that in mind when it comes to the topic of loan modification stepscosts.
Another option, and becoming more favorable with recent changes in the law, is to do the modification on your own using a do-it-yourself guide. It's like preparing your own taxes - just much easier. If you have a little time to invest, you can get the same results without spending the money and keeping your loan modification stepscosts low. The steps are similar but the costs are nothing. Most people don't realize that it doesn't cost much at all to do a loan modification. Your bank will not charge you for the service and it can be done very easily on your own. Once you have a basic understanding of what the bank is looking for and how to qualify, the process becomes simple. Find more details about this option (DIY) on our Do-It-Yourself page.
When evaluating your two options, it is very clear to see that the loan modification stepscosts are more in your favor, if you do-it-yourself. By communicating directly with the bank, you will be in complete control and ensure that your results will be as optimal as possible.
Go back to top of this Loan Modification Stepscosts page
