LOAN MODIFICATION

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A loan modification simply means to change or modify the terms of your original loan. There are several types of loan modifications that may be available to you depending on the type of loan you have (Conventional, FHA, VA, etc.) and who is holding your loan. In some cases, this can

be having the payment reduced and/or having some or all of the delinquent payments added on to the end of your loan.

Loan modifications are not automatic and you have to qualify to receive one. You may be contacted by various entities that want to “help” you get a loan modification. Virtually, all of them charge an upfront fee that may range up to thousands of dollars, with no guarantee that you will

actually receive the modification. You should avoid dealing with such people at all costs. They are out to make money and NOT to help you.

You can work directly with your lender, but be very leery of what they tell you. Don’t take anything you are told on faith, get it in writing. If they tell you they are delaying the foreclosure, verify that with the Public Trustee. There have been many instances of people who thought their foreclosure had been delayed or cancelled while they were talking to their lender, only to find out after the fact that their home had been sold at auction. You may feel more comfortable working with a loan modification attorney. I can furnish you some names.

Only a small percentage of loan modification applicants receive an approval. In the event you are approved for a loan modification, there is usually a 3- month trial process. During this time, if you are late or short, you will be immediately accelerated back into foreclosure.