How to Get a Loan Modification on Your Own

Most people think that you need the services of an outside third part to get a loan modification, but that is not always the case. While a third party is a viable option, it is not your only option. You can do the work for a modification on your own as well. Here are a few things to keep in mind when negotiating:

The Benefit of Do-it-Yourself

Doing a loan modification on your own can be beneficial in a few different ways. The first way that it can benefit you is that you can save your money. Loan modification companies typically charge high fees for their services. This means that you will spend more money than you can afford in most cases. 

In addition to that, when you represent yourself, you will know exactly what terms to expect. If someone else does it for you, they can agree to terms that still might not be good enough for you. Do it yourself and you will know exactly what you are getting.

Contact the Lender

When you are going to undertake this process on your own, the first thing that you need to do is contact the bank. Many times when you have fallen behind on your payments, you will receive a letter in the mail that tells you that you are now in default. It will often have a contact number on the letter that you can call. Call the phone number and tell them that you are interested in talking about your options. The person that you call will most likely transfer you to someone that can negotiate with you. 

Negotiate the Terms

Once you get in touch with someone that can help you, let them know what your intentions are. Tell them that you are willing to work with them if they are willing to work with you. Tell them that you have fallen behind on your payments and explain why. If you convince them that the situation was a one-time problem and that it is resolved, they will be much more likely to deal with you. 

Keep in mind that they want to keep you in your house as much as you want to stay in it. If they foreclose on your house, they will most likely lose quite a bit of money. They will incur court costs as well as lose your monthly mortgage payment coming in. Therefore, they will most likely come back with an offer on new mortgage terms. Look at the terms carefully and decide if they are to your liking. If you think that the terms are good for you, then go ahead and agree to them. You will be able to get caught up on your payments and get a payment that you can afford.