Several Internet based companies have started to advertise “do it yourself” loan modification services. These companies promise to teach borrowers the basics of loan modifications while providing all of the necessary forms, documentation and information a borrower will need to successfully apply for a modification. Programs also promise to teach borrowers how to negotiate with their lenders.
If any borrowers are facing foreclosure and are considering purchasing a do it yourself loan modification program, don’t.
To begin with, many of these programs don’t even allow homeowners to see what they are buying until after a credit card has been processed. Many homeowners will be disappointed to find out that their “do it yourself” program is nothing more than an instruction manual full of information that could just as easily have been found on the web for free.
Homeowners must also consider the urgency of their situation. A foreclosure can be very time sensitive to many homeowners. What homeowner has the time or the patience to learn everything they need to know about a loan modification while their lenders are actively pursuing the foreclosure of the home.
Also, loan modification negotiation skills are not something that can be learned from a book or a class, and especially not over night. Negotiation skills are learned by sitting in on and conducting actual negotiation sessions. Many lenders can recognize an untrained negotiator from a mile away and are very skilled at breaking down the confidence of an untrained negotiator. Once the lender gains control over the negotiator, the negotiation is over.
Since foreclosure laws vary from state to state and from lender to lender, the information contained in do it yourself loan modification programs will not apply to every person the program is marketed to. Many homeowners will be very disappointed if they discover the tactics outlined in the do it yourself program don’t apply to their specific state or lender.
To be blunt, these do it yourself loan modification services have “scam” written all over them. Borrowers often make uninformed decisions when faced with the stress of an impending foreclosure, but the stress should never lower a person’s guard. Borrowers must be very cautious before approaching any company or service that offers a “quick fix”, “guaranteed results”, “overnight success”, or the simplicity of a do it yourself program. A home is too large of a risk to take on an Internet purchased do it yourself program. Borrowers should use their money to secure the services of a trained attorney who can represent them every step of the way. Not only will this keep a homeowner from having to do all of the work themselves, but it will guarantee them that an individual with knowledge of mortgage laws and experience negotiating with lenders will be handling their case.
It is fine if a borrower wants to learn more about loan modification services for their own benefit, but their own home should not be used as the guinea pig to measure their skills. The lessons learned can be far more costly than the cost of the Internet purchased course.