The home loan modification process, like most processes in dealing with finances to buy or sell a house, can be far too complicated and confusing for the average American. While there are a series of available loan modification companies that can help you through the ordeal, we’ve provided you with a few commonly believed myths in loan modification.
1) You do not have to be late on your mortgage payments in order to receive loan modification help. However, you will more than likely receive greater attention and assistance from your loan modification company if you are already struggling.
Some borrowers believe if they aren’t late on pay, they won’t be able to get a modification. And while it no doubt is much more difficult, it is in no way, shape, or form impossible.
2) Some companies claim they can acquire principle reductions for borrowers who are already in the red and own more than the actual cost of the home. In fact, some companies claim they do this on a regular basis. This occurs EXTREMELY rarely, if ever, and any loan modification companies who claim to do this on the reg are trying to sell you on promises they cannot deliver on.
3) Do NOT believe that lenders are doing everything they possibly can to assist our nation’s financially-pressured homeowners. There simply isn’t enough man power available to help the tens of thousands of homeowners who have been laid off by their employers as a result of the struggling economy.
That is why it’s so important to have a private, third party assist you during your home loan modification process. Banks and lenders aren’t looking out for your best interests, and due to the intense economic conditions this country is currently in, they don’t have the resources to give you the kind of attention you require or deserve.
