Arizona Mortgage Team

Arizona Mortgage Rates. Refinance FHA, VA and Jumbo Mortgage Loans.

  • Loan Programs
    • FHA Loans
      • FHA 203k Loan
      • FHA Streamline Refinance
      • FHA Kiddie Condo Loan
    • VA Loans
    • USDA Loans
    • HomePath Loans
    • Interest Only Mortgage Loans
    • Refinancing
    • Reverse Mortgages
      • Reverse Mortgage Quote
  • Insurance
    • Arizona Car Insurance
    • Arizona Homeowner Insurance
    • Arizona Life Insurance
    • Arizona Renters Insurance
  • Press
  • Blog

Loan Modifications – Beware

September 5, 2008

Many people that we talk to every day are in a situation where “loan modification” is the best possible option for them. They have little or no equity in their home, they are in an adjustable rate mortgage and they have had a reduction in income.  As a result of one, two or three of these things, they are not able to meet the current underwriting guidelines to refinance their home.

So rather than lose their home to foreclosure, they are looking for alternatives.

One possible solution is to work with your current lender to modify your existing loan. Another possible solution is to find a HUD-approved Housing Counseling Agency.  Another is to work with a well-respected loan modification company who charges money for their services.

Apparently, there are some “loan modification scams” that are going on and you should be aware of what these look like.

A great post by a well-respected mortgage professional was posted recently here — and while it has become a conversation for mortgage professionals more than consumers — the point is this:

As a consumer, you have options to try to get your loan modified for free without paying a large amount of money to a loan modification company.

From the post, my favorite paragraph was one that someone asked the author to bold:

Consumers reading this blog:
Loan modifications are performed by a lender with no fee to the homeowner. HUD-approved Housing Counseling Agencies perform loss mitigation/loan modification services for free. These agencies are supported by our tax dollars.

As we have mentioned before, we currently recommend people to one loan modification company and do not get involved other than just referring them and allowing them to decide on their own whether or not working with a loan modification company is right for them.

I can say that with the number of people who contact us that are in a tough sitaution and looking for help, it is clear to me that the more help you can get on your side, the higher your chances of a successful outcome.

Many people who call us have already tried to get their lender to modify their loan and have been unsuccessful.  Very few people have talked to a HUD-approved Housing Counseling Agency, so maybe that is a next-best step before deciding to go with a loan modification company to help them.

But one thing is clear: the absolute worst thing that someone can do who is in danger of losing their home is nothing.

Learn How To Do Your Own Loan Modification Without The Help of a Loan Modification Company

Filed Under: Loan Modification

Recent Items

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Latest News

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Search

IMPORTANT MORTGAGE DISCLOSURES:

When inquiring about a mortgage on this site, this is not a mortgage application. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.

Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product.

When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing.

Minimum credit ratings may vary according to lender and mortgage product. In the event that you do not qualify for a credit rating based on the required minimum credit rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.

Copyright © Mortgage.info is not a government agency or a lender. Not affiliated with HUD, FHA, VA, FNMA or GNMA. We work hard to match you with local lenders for the mortgage you inquire about. This is not an offer to lend and we are not affiliated with your current mortgage servicer.

Contact Us | Terms of Use | Privacy Policy

Buy Mortgage Leads

Mortgage.info

NMLS ID #1237615 | AZMB #0928735

8123 South Interport Blvd. Suite A, Englewood, CO 80112

CLICK TO SEE TODAY'S RATES

Contact Us