In the past couple of months you have probably heard the term "loan modification", but in case you haven't loan modification is an agreement between you and your lender that attempts to lower your monthly mortgage payments. This is done either through reducing the principle interest rate, an extension on the term of the loan, elimination of certain fees accumulated due to missed payments, a grace period to get your finances in order, or any combination of the above options that suits you and your lender best.
Loan modification is an excellent option for struggling home owners and it works. Lenders are more likely to negotiate because in the long run it will be more profitable than foreclosing the home and selling it off for less then it is worth.
But where scams do happen, is when desperate homeowners hire firms to do their loan modification. Most firms are not accredited and are just looking for a quick buck. The FBI has issued multiple warnings regarding these types of scams. On the other hand the legitimate firms charge huge amounts of money, even nearing three to four thousand dollars for their services. Most of time they do not fight for their clients and take the first offer the lender gives them, which is nowhere the best the lender can do. Also lenders don't like the fact that you spent thousands of dollars on a firm, but can not pay your mortgage on time.
The best solution is to do it yourself like in most cases, but you have to know the subject very well. Most people don't do enough research and just contact their lender in hopes of getting a loan modification. But that does not work to well, and if your application gets rejected once, it will almost certainly be rejected in the future. It is a one time thing.
That's why loan modification kits were created. One such kit is 60 Minute Loan Modification. It was created by a person who modified five of his home loans and many more of his clients. This kit shows you everything from how to write a professional hardship letter, to how and what words to use to catch the lenders attention. Plus it includes recorded conversation between homeowners and representatives, so that you learn what vocabulary to use to get the best deal possible. Overall it is a great kit, which has helped many people successfully modify their homes.
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