Posts Tagged ‘Mortgage Companies’

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The Million Dollar Question: Loan Modifications Changing Rules

April 1, 2014

Anyone going through a loan modification knows it’s not a simple and easy process. There have been many discrepancies with the banks especially when it comes to loan modifications. The million dollar question is why are loan modifications changing the rules? My thoughts are some of the rules need to be changed to regulate the banks. Most loan modifications  I have investigated don’t benefit the consumer very much. The purpose of a loan modification in the Bank’s eyes is to extend the time of the loan in which the borrower can catch up on what they are behind. The truth is some modifications can hurt the consumer even more. Many loan modifications give the bank the right to add on extra fees and interest that normally wouldn’t be added on. This in turn hurts the consumer in that it puts them even further behind on their mortgage. Where loan modifications can help many consumers, they usually are only a temporary solution. This is because while during your trial payment period you may have lower payments, most of the banks doing the modifications will find a way to add extra interest and fees and therefore may result in a higher mortgage payment. Sometimes the best way to get out of your situation is to sell your home.

Most consumers do not know that if they sell their home they may be able to get money from their mortgage company as a relocation fee in order to avoid foreclosure. Anyone needing information about this should contact an expert. A mortgage broker that works with mortgage attorneys can often help. Stay far away from anyone that wants to charge you high fees to help you with a loan modification. Attorneys you hire that help you can often times charge their fees to either the mortgage company or mortgage broker.