Wondering If You Qualify for Loan Modification?

You've seen the headlines about the new legislation on the big financial meltdown which includes loan modification, right?

And, more than likely, like most of us, with the current headlines focused on health, no one has been keeping us up to date on how regular people are actually affected by the new laws. I, for one, want to know what's happening given the chance I may survive the swine flu.

Let's throw out a few facts* and I'll also share with you some ways to get help, ok? Great!

• In 2008, foreclosures increased 81% over 2007
• ALL 50 states are affected with Nevada, Florida, California, Arizona topping the list
• Did you know that for every foreclosed property in a neighborhood, surrounding property values decline as much as 9%
• Millions of homeowners who are CURRENT would like to refinance but can't due to lack of equity
• Millions are having challenges in making their mortgage payments due to a job loss, illness, crazy interest rate adjustments or other hardships

*Above "President Obama's Housing Plan, 2009, Tim & Julie Harris, Harris Real Estate University, pg 6-7".

There are a few ways people are able to get help to relive their mortgage pressures. I'm going to be honest, some are are very desirable and others are not.

Let's start out with the bad news first: If you can't refinance, or qualify for the Loan Modification plan, your next best choice is to short sale your home. This, of course, is least desirable since you'd rather remain in your home. It is still better for you than having a foreclosure on your credit report and the possibility is that, if handled properly, you may get the mortgage satisfied with your bank.

Next best scenario, not the easiest though, is to do it yourself. It is a time-consuming effort but if you can save your home, lower your monthly mortgage payment, & save hundreds of thousands of dollars, wouldn't it be worth it to you and your family?

Here's a DIY resource you can check out: Loan Modifications On Your Own by Morgan, Blown Mortgageb blog. There are tips, manuals and videos to help you through the process of doing it yourself.

The best scenario: you have the ability to qualify for the loan modification (there are guidelines you have to meet for income & hardship) but you aren't able to negotiate with the bank. This leaves you with having to secure someone to act as your agent to speak with the bank or find a new one. Please Be Careful!! There are scams and lots of those who will charge you thousands or take the title to your home! Read everything before you hand money over to anyone or sign anything! This course of action will, of course have a fee attached to it, just don't go for the one that charges for the application. Try to work with a professional in your area you have a relationship with already, like the RE broker who sold you your home. Many RE professionals are qualified to help you or you can work with your financial services adviser who may also be qualified to assist.

I hope this helps someone with the desire and ability to stay in their home! It's good for the health of our families, our neighborhoods and our economy.

TTFN! ~ Jax