Loan Modification Help

Being represented by a loan modification firm is even more important when your lender is unwilling to negotiate a modification or makes their modifications division inaccessible to the average consumer. Sadly this is very common among most of the lenders. In January of 2009, nine-term U.S. Congresswoman Maxine Waters had such an experience when she attempted to contact several of the nation’s top lenders in an attempt to help several of her constituents modify their current mortgage loans. Remember this woman is a well respected member of the United States Congress and even she was given the proverbial “run around”!

Most people wouldn’t hesitate to call a professional when they need to refinance their existing home, purchase a new home, draft a will, fix their car or even fix a leaky pipe. But in some cases individuals in need of a loan modification will attempt to negotiate with their current lender on their own and without the help available from a “professional mitigation firm”.

Even though you as the borrower have the option of working directly with your lender’s loss mitigation or loan modification department it is not always the smartest choice, as Congresswoman Waters has found while personally attempting to work with several of her constituents lenders on their behalf. You are more likely to achieve greater success by hiring a “professional mitigation firm”, just as you would hire an attorney to represent your best interests in court, an accountant to prepare your tax return or an electrician to rewire your home.

When dealing with a bank or lender we need to keep in mind that banks and lenders workout many loan modifications everyday and they have a lot of experience at it! In most cases individual borrowers who attempt to modify their own mortgage loan do not have the experience or negotiating skills to get themselves the best possible loan modification. It is important for you to remember that the number one priority of almost all banks and lenders is to protect their own interests and generate profits for their investors. The truth is banks and lenders are in business to earn a profit just like every other business, and they are entitled to have a realistic expectation that individuals who borrow mortgage funds from them will honor the written terms of their original mortgage agreement. It is for this reason, that many banks and lenders will reject a loan modification application because the lender feels that the borrower should be able to afford to make their current (and in some cases “bloated and unfair”) payments.