What is a loan modification?
A loan modification is any change made to the existing terms of your current mortgage as agreed upon by you and your lender. Most commonly, a loan modification is a completely new set of terms offered by a lender to allow a homeowner to stay in their home and avoid foreclosure.
The problems that most homeowners face when attempting a loan modification are that their mortgage lender constantly loses their paperwork, reassigns their 'single point of contact,' or simply disconnects their call after length periods of time on hold.
The process can be very frustrating for homeowners, especially if they do not have the time needed to dedicate to dealing with their mortgage lender, which can easily amount to dozens of hours.
BORROWERS BEWARE: There are countless 'loan modification' companies out there, preying on delinquent homeowners, scamming borrowers out of thousands of dollars in bogus fees. Do not hire anyone to handle your loan modification that is located out of state and does not demonstrate a track record of proven success.
Important things to consider with a Loan Modification..