Why Not To Do Loan Modification On Your Own
Author: Joel Jacobi
No matter what situation you can think up, it almost always comes down to the eternal conflict of time versus money. Do you want to spend your own time doing something, and spend less money, or would you like to spend more money to have someone else do most of the work for you? Another question you might want to ask yourself is: Can you do the work?
Loan modifications are no different. If you want to go through the process on your own, without paying a third party to represent you, its going to take a lot of your own time. First of all, its important to understand the concept of opportunity cost. If you are taking a lot of your own time to accomplish something, and that could be time better spent making money at work or spending time with your family or friends, you have to weigh the cost of what you could be doing with that time.
When it comes to loan modification, if you go the solo route, you will bear the brunt of the grunt work, such as filling out paperwork, calling and negotiating with loss mitigation representatives at your lending institution, and attempting to demonstrate how you qualify for a loan modification. If you are in financial trouble, it is understandable why you would want to avoid spending even more money on representation for the negotiation of your loan modification. Unfortunately, being frugal in this area can be the most expensive decision you make.
Assuming you do have the time to devote to tackling the loan modification process by yourself, you must then be sure you have the knowledge necessary to present your case effectively. There are do it yourself kits and other resources online that try to help you prepare for negotiating the terms of your loan, but unless you are already familiar with real estate, banking, and loans, or you are superhuman in your dedication to learning all about them, you will not be able to match the knowledge of someone with schooling, training, and experience in those areas.
Essentially, your goal is to give the bank a clear picture of why they would benefit from changing the terms of your loan. As sad as it is, the bank isnt run to be charitable toward those who are having a tough time; the bank is run to be profitable. Therefore, you need to put aside emotions and go into negotiations ready to discuss numbers, percentages, interest, and why the outcome will be a positive one for the bank. If you dont feel you can successfully learn all of this and handle it by yourself, you might want to look into a professional third party loan modification attorney.
The biggest reason not to go it alone is that banks can be predatory, and they are much less likely to take an individual seriously. Think about if you were on trial for murder, and you were trying to defend yourself, rather than using an attorney to defend you. Just the fact that you have an expert to argue your side of the case will cause others to pay closer attention and have more respect for what is said. Its unfortunate, but you really do benefit from having a strong ally in something as important as negotiating a modified loan.
The best way to protect yourself is to be educated on all of the possibilities. Make sure to keep an open line of communication with your lender on the subject. If you have hired an attorney to represent you against the bank, be sure to express your concerns about any future liability, says, Joel Jacobi, Managing Attorney at American Residential Law Group.
In the end, even with diligent research and effort, you simply cannot match the results of a professional company with resources and personnel dedicated to helping you. If you can save hundreds per month on your mortgage payment, you can certainly justify the cost of seeking a third party for loan modification.About the Author:
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American Residential Law Group is a highly regarded law firm providing client-focused, interdisciplinary services that result in high-value legal counsel for our clients. Managing Attorney, Joel Jacobi, is an industry leading loan modification attorney.
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