A prominent consumer advocate and spokesperson for the Federal Loan Modification Law Center recently released a list dispelling the top 5 myths about loan modification. Intended to better educate homeowners facing the prospect of losing their home to foreclosure, the following list demystifies the most common misconceptions surrounding the loan modification process.
Myth# 1:My bank wants me out of my house. My bank wants my home. 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. 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. 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. 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. As long as you still reside 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 and tell me where to send it or email it to. 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.