A Common Loan Modification Mistake and How to Avoid It

Boynton Beach FL – Here is a common loan modification mistake that many homeowners make. They accept a very short term payment agreement that is not a loan modification.

They could have gotten a real modification, but settled for whatever the lender recommended to them. They settled for what is called forbearance. Here’s how it works.

A forbearance does not reduce your payments. It doesn’t reduce your back payments, or reduces them very little. The lender just allows you to catch up on all the debt over a set time period.

You start paying your normal payments again. In addition, you also have to pay extra every month to catch up the back payments.

Many homeowners are so desperate to keep their home that they agree to this. It is the first thing recommended by their lender and they just accept it. Quite possibly, the homeowner could have received a real loan modification with genuine relief.

In some cases this is good for the homeowner.They didn’t experience a big drop in income and can afford the payment. But, if their income was subsequently reduced, then they are setting themselves up for failure. Why?

Many lenders have a policy that they won’t negotiate a loan modification with someone who has already defaulted on a forbearance or loan modification.No, they won’t admit this in public. And it usually isn’t a written policy. They just simply put people asking for a new modification on the back burner.

The bottom line: Don’t accept a forbearance unless you can afford the payments. And remember, if you do accept it and later default, then you are putting yourself at a much higher risk of losing your home.

We offer a loan modification guide to consumers. Here is what we cover in the Stop Foreclosure Institute's Loan Modification Insider Secrets Guide.

* An easy to understand, Step By Step Guidebook.

* How to write a Hardship Letter that gets your loan modification approved.

* Three big loan modification mistakes and how to avoid them.

* Loan Modification from the lenders point of view.

* How the Making Home Affordable Program can help you.

* What not to do so you don't risk being carted off to jail.

* How to calculate your budget properly to increase your chance of success.

To request this kit send me an email : LoanModKit@thejacksonteam.com

Thinking about a short sale instead of a loan modification? We can help you short sale your property without paying any closing costs or commissions. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. I will contact you for an in-depth consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (561) 602-1258

Thanks for reading this, Steve and Jackie Jackson.

ShortSaleInfo@thejacksonteam.com.

Personalized...Not Franchised


Steven Jackson specializes in loan modification assistance and short sales in Boynton Beach Florida. Boynton Beach Loan Modification Help, Boynton Beach Short Sales. Boynton Beach Short Sale Realtor,Short Sale Realtor. Boynton Beach FL Short Sales. Boynton Beach Realtor.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve and Jackie Jackson's personal views and do not reflect the views of The Jackson Realty Group Inc..