Being approved for a loan modification is a process that takes time and patience. Usually, however, time and patience are two things that homeowners facing foreclosure can’t afford to spare. Borrowers facing desperate times often look for shortcuts to being approved for a loan modification. Others simply try tackling the whole process alone.
The secret to negotiating loan modification with your bank is to never face the lender alone and steer clear of scammers trying to take advantage of your situation. The best thing you can do if you ever face foreclosure is to hire a professional attorney with experience in real estate and foreclosure law to represent you and negotiate for you.
Negotiating loan modification with your bank is difficult to do alone because every lender understands that the majority of their clients have little to no knowledge of real estate and foreclosure procedures or laws. Some lenders will take advantage of this lack of knowledge by failing to explain certain items, while others may attempt to flat out lie. Much like a used car salesman, when the lender says “That’s as low as we can go”, it usually isn’t as low as they can go.
An attorney will not only be able to negotiate on your behalf, they will also be able to conduct an audit of original loan documents to uncover any illegal or predatory lending practices. As soon as the lender realizes that their unethical practices have been uncovered, they are usually more willing to negotiate fair terms.
Before negotiating loan modification with your bank, be sure to avoid scammers who will try to squeeze as much money as they can out of you without doing anything to fix your financial situation. Several loan modification “experts” have been charged with crimes in several states for taking advantage of their clients or operating illegally. Attorneys are highly regulated by their respective state bar associations and must meet very strict requirements before being allowed to practice laws. Non-attorney loan modification “experts”, on the other hand, sometimes only need a business license and an office space to set up shop.
For those who still think that they can negotiate successfully alone, their success will not usually be nearly as high as those who hire experienced attorneys. Attorneys know how to call bluffs and pursue litigation should the lender fail to fold. Again, you can try to do these things without the assistance of an attorney, but the process will be nowhere near easy. Even if you are persistent and willing enough to pursue a loan modification on your own, you would still have to spend precious time researching and studying in an attempt to learn how to successfully reach your goal. While attempting to condense a suitable law school education into as little time as possible, you will most likely have little to no access to professional mentors or guides to help you as you learn. An attorney, however, already has the knowledge and experience necessary to begin pursuing the best loan modification terms possible as soon as their services are secured.
Borrowers should do what they can to learn about the loan modification process. It’s always a good idea to learn the facts behind the process that could essentially save your home, but you shouldn’t attempt to learn as you go. Learning as you go is a method of learning better suited for the first day of work at a new company, not for saving a home from foreclosure.