Tips regarding loan modification
At times people face problems with their mortgage. It often gets adjusted in there loan and they have problems with new payments.
If a person has mortgage his property he must find out if the lender and broker are genuine. They should not be fraud.
Before going in for loan modification keep two things in mind. Firstly get your loan documents examined by an experienced mortgage law attorney. Secondly a complete loan history must be written to check if there are any bogus charges or fees included in their mortgage balance. Things to look out for your loan modification are mentioned below.
Compare the loan you got with the loan you thought you were getting. Are the terms and conditions same? Is the rate of interest the same as you were told? Is there any payment penalty? If yes, were you pre-informed about it?
If you are taking loan on the property you live in, look at the notice “RIGHT TO CANCEL”. According to this the borrower has the right to cancel the loan upto 3 days from the time he signed the loan documents. If the lender does not provide this right to cancel then the right to rescission may be extended for upto 3 years. In such a case you can cancel the loan at any time before three years. That means it will be treated as if the loan never existed. As a result you are entitled to a number of benefits, all interest paid, all closing fees, all broker fees and your attorney fees (which is usually high).
If no laws have been violated then approach your lender for a workout or loan modification. Factors to be considered are:
- Nature of hardship causing mortgage problem.
- Ability to pay.
- Amount owed.
- Equity in the property.
- Future financial conditions.
- To pursue a loan workout or modify loan.
If the lender is ready to modify loan, approach him after proper planning because they are expert in minimizing loss. Be very careful during conversation because everything can end will be used against you.
Lenders have two types of employees. First the collection department and second the loss mitigation specialists. The collection department tries to pullout the money from you. It is very difficult to contact the other department. Phone will not do, you will have to some how catch a live person from this department.
