What is a Blind Loan Modification?

Have you ever heard of a blind loan modification? If you haven't you're not alone. Blind loan modifications are proposals made by lenders that are unsolicited. Lenders offer you their services in regard to your mortgage terms.

At first glance blind loan modification sounds pretty good. I mean it's rather nice that the lenders are offering such great services to us little guys, right? If you're feeling just a little important don't.

These lending institutes aren't doing you any favors by offering you a blind loan modification. Banks use this subtle strategy to maneuver "at risk" mortgage homeowners into accepting terms that seem to be specific to their situation.

The banks are well aware that these potential clients are most often not aware of their options and rights as a homeowner. Banks take advantage of this by ensuring they never have to actually negotiate with the potential homeowner. In other words they have their own interests at heart not yours. The parameters the bank offer are never in your best interest.