Carolyn's Blog


Clearing up Some Mysteries about Loan Modification...

In a recently published study, a consumer advocate who is also a spokesperson for Federal Loan Modification Law Center, released a list dispelling the top 5 myths about loan modification.  I think Ralph's study is quite valuable, considering today's housing situation, so I am sharing some of his great ideas with you.

My goal is to better educate homeowners in the Mentor, and Lake County, Ohio area who might be facing the prospect of losing their home to foreclosure.  The following list clears up some of the most common misconceptions surrounding what lenders refer to as the loan modification process.

Myth# 1:  My bank wants me out of my house. My bank wants my home.

Wrong:  Banks and other lending institutions do not want to foreclose. They make more money if you make your payments.

Myth# 2:  My credit score is so bad I won't qualify.

Wrong:  Loan modification adjusts the terms and perhaps reduces the balance of a loan you already have. This is not about refinacing and applying for a new loan.

Myth# 3:  I am not late on my mortgage payments so I won't qualify.

Wrong:  Early on you had to be 61 days delinquent in order to qualify. The truth is the eligibility requirements are constantly changing and differ among lenders.

Myth# 4:  I would be better off walking away or declaring bankruptcy than modifying my loan.

Wrong:  Walking away from the home and filing for bankruptcy are certainly 2 options, but they are rarely the best options when your facing foreclosure.

Myth# 5:  It's too late.

Wrong:  As long as you still live in the home and it hasn't been sold at a foreclosure auction- you may still have time to work out a loan modification with your lender.

If you would like a full copy of this report, either call me or email me, Carolyn Kolba, at (440) 567-7211, or let me email it to you. There is a lot more to this report and more information available.

If you know of anyone either heading for or already in a financial situation with their home, please have them contact me for a free consultation. There are alternatives to many of these problems.

Comment balloon 10 commentsCarolyn Kolba • July 23 2010 11:04AM


These are great advice Carolyn. Not everyone is aware of this.

Posted by Will Nesbitt, Nesbitt Realty is a family-run brokerage. (Nesbitt Realty at Condo Alexandria) about 10 years ago

Will, there is just so much out there in the public realm about short sales and foreclosures, and it seems every has their opinion.  So many times, though those opinions are not rooted in fact.

Posted by Carolyn Kolba, Keller Williams Realty- Mentor, Ohio (Serving Mentor, and all of Lake County, Ohio) about 10 years ago

It's unfortunate that before, lenders wouldn't talk until a homeowner was two months late.

Posted by Bill Travis, Broker/Owner (Captain Bill Realty, LLC) about 10 years ago

Bill, with many lenders, that is still the case.  It just doesn't make sense.  If the sellers are dealing with a major hardship, why the heck wait until the ship is actually SINKING before throwing them a life preserver ?

Posted by Carolyn Kolba, Keller Williams Realty- Mentor, Ohio (Serving Mentor, and all of Lake County, Ohio) about 10 years ago


You recently commented on one of my posts, (a re-blog actually) so I thought I would return the favor.  However I found this one to be worthy of a suggest.  Any chance you could email me this

report?  Thanks



Posted by Bill Dean, William Dean - Broker, Salesperson (Haggerty Team St. Louis, Mo.) about 10 years ago

Hi Carolyn,

Loan modifications can be a life saver for many families.  You are a great agent and a good person to get the word out about loan modifications.  It's very rare to hear an agents talk about loan modifications.  

Posted by Maya Thomas, Broker, Please see my client recommendations. about 10 years ago

Hi Carolyn - this is an excellent and simply written article...for the average public, this might be a savor! You seem to be very knowledgeable about forclosures, which is excellent for a market condition as today. Thanks for the great stuff!!!

Posted by Houman Shahi (Coldwell Banker Residential Brokerage) about 10 years ago

We constantly recommend that people pick up the phone and at least open up the lines of communication with their lender.  A good friend of ours just qualified to have his interest rate reduced to 2% for a year and then it goes up 1% a year and caps at 5%.  Seems like a heck of a deal!

Posted by Gary & April Greer, Real Estate Professionals (Century 21 Wright) about 10 years ago

Carolyn, I hope your blog post helps those who are unclear about myth vs. truth when it comes to loan modifications! :)


Posted by Bob & Leilani Souza, Greater Sacramento Area Homes, Land & Investments (Souza Realty 916.408.5500) about 10 years ago

Carolyn,  Everyone of your points are true. They provide good reason for borrowers to not give up when pursuing a loan modification.


Posted by Steve, Joel & Steve A. Chain (Chain Real Estate Investments & Mortgage, Steve & Joel Chain) about 10 years ago