If you are a homeowner struggling to pay your mortgage payments
, Obama's federal loan modification program sounds like a great way to get your finances back on track. However, before you begin any negotiations to modify your loan, you need to be aware that this plan has a very low success rate. Only about 10% of those who attempt to receive loan modifications under the program are successful.
Although the $75 billion allotted to the federal loan modification program is supposed to help people facing foreclosure, the truth is that people who have applied for the program have found it to be extremely difficult to get through the application process. The main problem seems to be the amount of paperwork that is required in order to apply.
You can improve your changes of obtaining a successful federal loan modification by getting some help. Although it can be expensive to hire a lawyer, there is a lot of paperwork involved in the loan modification process. Find a lawyer who has experience working on loan modifications, and be sure to ask for references from satisfied customers.
Another option is to hire a loan modification company. Be careful with this; there are many fraudulent businesses that will take you money and do nothing to help you get your loan modification. There are always people looking to take advantage of others, and loan modification scams have become quite common. Make sure you check out the company with the Better Business Bureau and do a little research online to see whether their customers seem to be happy with the service they received.
When you get professional help pursuing your loan modification, you improve your chances of success. Consider the cost of a loan modification company or lawyer as an investment in your future. If the modification is successful, you will save a lot more on your mortgage in the long run than it costs to hire someone to help you through the process.