Understanding Loan Modification

The first thing to note about loan modifications is that unfortunately, homeowners and banks are in disarray. Neither banks nor borrowers have power in this economic environment. The two must work together to not only keep families in their home but to also turn this recession around. When a bank does a modification it could mean an immediate financial loss but the long term losses are minimized verses mass foreclosures.

You can either attempt to work with your financial institution to work out a loan modification yourself or contact a loan modification company to negotiate a work out on your behalf. Be aware of paying large upfront fees. The last thing you need when you are already in a financial bind is to be ripped off!

Next post we will go into the different options for loan modifications. Stay tuned…