Sales of loan modification kits have increased since the collapse of the housing market in 2007. Since that time, homeowners have been looking for ways to save their homes from foreclosure in the face of ballooning interest rates and dropping property values. Loan modifications seem like the perfect solution for many struggling homeowners and rightly so. Loan modification is the only method of foreclosure avoidance that allows borrowers to maintain ownership of their home and lower their monthly mortgage payment.
Modification kits available on the market today offer borrowers looking to modify their existing mortgage loans a “do it yourself” option. While understandably attractive, borrowers should not be so quick to buy such a program.
For starters, most, if not all, of the information that a borrower can get from their loan modification kit can be found for free on the Internet. Also, the various forms that the lenders use as loan modification applications will vary from lender to lender, making it impossible for any kit to offer a “one size fits all” solution. Kits would also have to be specific to each state, since each state has their own laws in place that affect the loan modification process.
When a person purchases a loan modification kit they usually purchase a collection of information that somebody else pulled from the Internet. Paying for something that a person can get for free is never a good idea. Not only does the purchase of a loan modification kit fill the borrower with a false sense of hope, it also wastes valuable time that could better be used actively fighting the foreclosure process, not just brushing up on it.
Millions of people have felt the sting of foreclosure or pre-foreclosure over recent years. In most cases, the individuals who have been represented by experienced foreclosure attorneys have been the homeowners with the most luck avoiding foreclosure. This is because those homeowners understood and realized that the knowledge they would need to save their home couldn’t be purchased through the television or Internet. Fighting foreclosure is a very delicate and time sensitive practice. The slightest mistake literally has the potential to cause one to lose their home. In fact, since 2007 when the housing market collapsed, lenders have admitted that one of the main reasons that a person could be denied for a loan modification is that their application for assistance is filled out wrong or incomplete.
Wanting to learn how to do something on one’s own is never a bad idea, but when the risk of failure means the loss of one’s home, the task at hand should be analyzed to determine whether or not it would be prudent for one to undertake such a task.
Borrowers facing foreclosure are urged to contact a foreclosure attorney and avoid any “quick fix” schemes that will do little more than charge a person for what they could have done for free while wasting time that could have better been spent looking for a professional to handle the case.