We’re a culture of do-it-yourselfers – that’s part of what makes America great!  We get stuff done the way we want it – when we want it.  That’s the way we are.  When it comes to your home Loan Modification though, I’d like to suggest you take a different strategy – leave it to the professionals!

I have one of those really cool four door Jeeps.  I love my Jeep.  I drive it every day.   But, when it breaks I don’t do the repairs, I take it to the dealership and let them repair it correctly.  I’m not a mechanic, I went to school for business management and finance – not to fix engines, fuel injectors, air conditioning systems, transmissions etc.. I leave it to the professionals – people that are trained on how to fix those particular parts.  This way I know the job is done right and I can sleep well at night knowing the Jeep’s not going to blow up tomorrow because I didn’t connect something right.

Your home mortgage works in very much the same way.  Unless you are well versed in mortgage banking, finance, negotiation strategies, and the law surrounding home Loan lending – you’re definitely going to come out thousands of dollars ahead by engaging the services of a professional Loan Modification Company.

It is true that you will have to pay the company for their services BUT I promise you, if you have chosen a quality loan Modification firm, it will be worth every penny.  Even a 1% difference in interest rate of the life of your loan will wildly trump the investment you make in hiring an expert that deals with mortgage modifications day in and day out.

Let’s say you worked with your lender on your own and got them to agree to an interest rate of 5.5% on a loan balance of $200,000 for 30 years – your monthly payment is $1,135.58.  On the other hand, if you’d used an Expert Loan Modification company they would have known that most loans similar to yours are being set at 4.5% interest (non 5.5%) and they fight for that and get it… you’re new monthly payment would be $1,013.37.

The difference between the two monthly payments over a 30 year time frame would be a total of $43,995.38!  And this is just with a 1% difference in interest rate.  What about waiving fees, forbearance of principle, even forgiving principle balances… there’s all kinds of financial benefits you get when you use a professional modification service.

I can promise you this…. The banks are playing for their own self interest.  I’ve seen some really ugly homeowner negotiated mortgage.   They’ve ended up with a temporary band aid and I’m willing to bet they will be right back in the same situation in a few years.

From one perspective you could say that, yes, the author is biased because I am consultant for an expert loan Modification Company, but on the other hand that gives me a unique perspective of  talking to hundreds of homeowners about what their banks have told them… and what their banks have offered them – and it’s not pretty out there!  Most of our clients are homeowners that tried to modify their home loan on their own.

Please heed my advice… from someone on the inside… use a professional firm with expertise in this area.  It will be worth every penny you have to beg, borrow, and scrape up to make it happen!