Loan Modification: How to Turn the Tables on Your Bank
by:
Harry J. Andersohn
As consumers, it's not like we have a con of opportunities to "get back" at huge financial institutions. Take for example what it was like when you applied for your mortgage. You probably had to search high and low for a massive amount of documents that basically told your entire life story.
Never mind that you basically had to sell your soul and bend over backwards to prove that you were worthy of letting the bank take your money in exchange for the loan.
Well now the shoe is on the other foot. Thanks to this awful economy that were in, the banks are downright losing it. Take a look at a company like Washington Mutual -- this is a company that had been around for more than a century, and had weathered all kinds of crises before. But they couldn't get through this mortgage and credit mess.
Now, most people are running around fretting about what to do. They think the sky is falling, they're going to lose their home, they're going to lose their job, they'll never be able to get credit, etc. Well guess what?
It's actually because the economy is so bad right now that we have the banks exactly where we want them. For example, let's say that you're finding your mortgage payment is just too much for you to handle right now. Your bank wants to talk to you.
Let's say your hours have been cut at work and you're not making as much money as you did when you got your mortgage. Your bank wants to talk to you.
Let's say you lost your job altogether. Your bank wants to talk to you.
So what's going on? The banks are desperate to keep as many loans as they can in the good pile and want at all costs to avoid having to foreclose on your home. Why? Well that's a little bit complicated, but let's just say that when a bank foreclose on a home the financial hit they take is severe.
What all this means is that through things like a loan modification, we homeowners can actually use this crisis to come out ahead. The reason why is because if we go ahead and do the loan modification now, we permanently modify the terms of our loan -- we lower the interest rate, we reduce the principle we owe, etc.
So even when the economy turns around and times are good, we're still benefiting from a mortgage that was negotiated when times were terrible. I've heard it said that more millionaires were created during the Great Depression than at any other time in history. That's because there was a group of people who understood that even tough times bring opportunity.
In my mind, things like loan modification are just such an opportunity for the average Joe. Now I'm not saying there's no work involved. There is. You'll have to present the same kind of documents did when you got your original mortgage -- like a pay stub, a line item budget and things you didn't have to include, like a hardship letter.
But it's a small price to pay when you consider that you're going to benefit for the next 30 years -- if that's how long your mortgage is.
If you're even thinking about this, if you're even thinking that you may have trouble meeting your obligations now or in the future, then you have to check out the resources here. They can make all the difference in the world.
About the Author:
Get over to this
loan modification site and watch the quick video. I'm telling you that this is one of the greatest periods for homeowners, and you'll see why when you watch the clip.
The other site I suggest is this
loan modification portal, where you can get advice on the process.
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