There are new home loan modification programs hitting the streets right now, and home owners all across Washington state are taking advantage of them! The question that I am hearing a lot is ‘can I do my own loan modification?’
The answer is YES! With the crisis in the real estate market, came a flood of companies that offer to help you modify your loan and making all sorts of claims. The truth is, if you are willing to spend some time on the phone and do a little bit of paperwork, you most definitely can do your home loan modification yourself.
The first place to start is by contacting your bank and asking for the loss mitigation department and requesting a loan modification package. This will let them know that you desire to work on getting your loan back on track and will give you the list of information that they are going to want. What they will be looking for is some proof of income, a statement of hardship and so on. Be honest with them and provide only what they are asking for. The people working on these modifications have heard it all and don’t want fluff or sob stories. Include only the facts of the situation and a summary of what your ability to repay your loan is.
Should I hire a loan modification company? First off, let me say that loan modifications haven’t been around long enough for anyone to be truly and expert at them. Additionally, in Washington state there are new laws regulating the fees and who can legally do loan modifications for you! The Washington State Department of Financial Institutions has information on how to choose a loan modification company and can verify if they are licensed to loan modifications in Washington state!
| Be wary of companies that say that they are licensed to do loan modifications in all 50 states! Verify their information to find out if they are licensed in Washington State.
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If, however, you are in a situation that requires a bit more firepower, I would suggest speaking with an attorney that is proficient in loan modifications. They generally bypass the loss mitigation department, and go straight to the legal department. In general, I would suggest turning to a lawyer if you have met with resistance after you have attempted to do it yourself.
The main thing that I can tell you through all of this is keep informed, keep pushing and stay in communication with your lenders. Nothing will kill your chances of modifying your loan than not communicating your situation to them and waiting until the last minute to work something out!