I am sureÂ everyone reading this post has seen or heard all sorts of advertising promising to help you with your loan modification process. Are these organizations really out to help you?Â Some are, butÂ many are looking to profit from you and the current economic climate.
If you conduct basic research, you will see that many are the same predatory lenders that contributed to the current mess by making bad loans. Some are real estate attorneys charging fees rangingÂ from $1500 to a percentage of the money they save you with a new loan. That can easily be well into the thousands. They will have you believe that you have little or no options but to work with them. The more desperate you seem, the harder they press!
It is imperative that everyone know that you have options. Your first option must be to contact your current lender. The government's newly passed stimulus package includes Billions of dollars of incentives for banks that are willing to work with homeowners to avoid foreclosure.
Because many of our clients work with them, I called Countrywide to ask them about their process. You call and tell them you want to apply for a loan modification. To be considered, you must provide them with most resent 2 months bank statements and pay stubs (Taxes for self employed),Â your current monthly expenses list, and a hardship letter to explain why you are applying.
You have options! A good place to get answers and understand the governmentâ€™s stimulus plan is their consumer information web site. Use the link below and start today to get on track. This too shall pass!