subject: Loan Modification Standards [print this page] When it comes to loan modification standards, different lenders and organizations will have different requirements used to determine which borrowers are most deserving of assistance and to what degree that assistance should be offered. Some lenders will have more strict requirements than other, but the requirements used to determine who is deserving of a loan modification are not the only standards that differ from lender to lender.
The experiences that borrowers have with their lender while trying to have their loans modified will also vary. Most of the comments posted on the web by borrowers who have experienced a loan modification process tend to lean towards the negative. While many borrowers experience different levels of unhelpfulness from their lenders, some lenders have become more notorious than others for certain traits. For example, a few lenders in particular have gained a reputation as being lenders who cant be trusted with important modification documents, due to their tendency to lose those documents time and time again. Other lenders are notorious for having the borrower spend more time listening to hold music than talking to an actual human being, assuming, of course, the borrower isnt hung up on.
With so many different standards floating around the lending community, borrowers need assistance they can count on. An attorney can benefit the borrower in several ways:
Advice: an experience foreclosure attorney can offer third person advice free from bias. Anyone who takes anti-foreclosure advice from a lender or a lender employee is a fool. The borrower just has no way of knowing what exactly are the true intentions of the employee.
Negotiation: Some business people spend thousands of dollars in seminars, classes, and costly mistakes learning how to become top notch negotiators. Unless the borrower has this kind of experience, the borrower should avoid saying anything at a negotiation for as long as they can. Attorneys are experienced negotiators who practice their skills every day, inside the court room and out. Let the attorney do the talking because they know what theyre talking about.
Document review: Not only can an attorney review application documents for the borrower to ensure they are accurate and complete, they can review original loan documents to ensure that no illegal or predatory lending practices were present at the time the original mortgage contract was signed.
Litigation: This is what attorneys are known for best. Litigation is the practice of presenting evidence in court. Should a borrowers case go to trial, a good litigator can mean the difference between victory and defeat.
The problem with loan modification standards is that there are no hard and fast rules that must be followed by every lender every time when it comes to a modification. Just because a person meets the standards necessary for a modification, it does not mean that the borrower must modify. This is where it comes in handy having an attorney. Even if the lender refuses to modify, the attorney can apply legal pressure to make the lender rethink their position on the matter.
by: Timothy McFarlin
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