I took a strange phone call today.
The caller explained how they had been working with their lender on a loan modification and had finally gotten their lender to propose a loan modification that would cut $60,000 off of their principal balance and reduce their interest rate to 3% for 5 years, then adjust it to 5% and fix it there for the remaining 25 years.
His question to me:
Am I getting a good deal on my loan modification?
At first, I didn’t know what to say.
Maybe? Yes? I don’t know?
These were the first three things that came to mind.
How do you know if you are getting a good deal on your loan modification? I think it may be impossible to set a “good deal on loan modification” standard because each individual loan modification is different than the others. How your loan gets modified depends on so many different factors – many of them unique to the individual situation.
Are you getting a good deal on your loan modification?
Here are 3 things that you can do to help answer the question of whether or not you are getting a good deal on your loan modification.
- Ask around. See what other terms that people are getting on their loan modification.
- Begin with the end in mind. If you know what will work for you before you start the loan modification process, you have a much better chance of feeling like you are getting a good deal once you achieve your initial goal.
- Do your research on loan modification. Many people have success with the loan modification process and are sharing their experience.
No matter what you do – before you sign the final paperwork to get your loan modified — make sure you feel like you got a good deal on your loan modification.