Surely by now everyone has heard of the latest government programs addressing the sub-prime mortgage crisis; they may even realize that there are loan modification companies out there to aid in restructuring the terms of their mortgage. What most consumers do not know is exactly how the process works and what to expect during the process.
Remember that the mortgage servicer is not on the side of the homeowner. They are merely concerned with their own bottom line and have no incentive to patiently walk the average consumer through the process.
What the government and media want you to believe
Should you believe the positive spin being put on efforts to help the current economic situation by the government, as well as the media? If you listen to the nightly news, you may find yourself fully convinced that you can deal with your mortgage servicer yourself and quickly and easily restructure your loan so that you are safe from the threat of foreclosure.
What they are not being completely honest about is that a mortgage loan is a legal document. The homeowners who signed it are legally bound and obligated to pay it back under the terms it was written. Attempting to restructure the loan without professional advice and the correct legal information can actually result in creating a worse situation for the struggling homeowner - and oftentimes, the loss of the property anyway.
New government loan modification rules
Knowing the government loan modification rules is important if you are looking to modify your loan within the new guidelines. Do not leave anything to chance. If you are not entirely sure what you are doing, you should immediately see an attorney so you know all the loops of any contract. If you do not know what the qualifying factors are for a loan modification, how could you possibly get approved?
This is where the attorney's that New Hope Mortgage Solutions, LLC work for have helped homeowners. It takes knowledge, negotiation skills and legal empowerment to win this battle. NHMS has maintained an over 99% success rate for mitigations and continue to improve every day.
“Do-It-Yourselfers” face risks
If you are considering going through the process of the mortgage modification process without benefit of legal counsel, be aware of some of the drawbacks.
The first one is that the new loan terms will probably contain further legalities that are not in the best interests of the mortgage holder. Often you will find a release of liability clause included; for the homeowner, this means that they are not allowed to seek legal action against the mortgage company for any reason - never a good recommendation.
Most homeowners who restructure their mortgage without benefit of professional counsel will end up facing foreclosure again within six months of the new loan. Remember that the financial institution only cares about getting their money and will not do what is in your best interest.
Using loan modification companies as your advocate to prevent foreclosure is highly recommended. These firms have the knowledge and resources to investigate what company truly holds the mortgage and how to best deal with them and respond appropriately to the legal ramifications. If you are facing foreclosure, this is no time to try to do it yourself and risk losing even more. |
