9 Tactics
Loan Modification Tactics – 9 Secrets to Success
If you’re considering a loan modification be aware of the following strategies to guarantee your success.
1) Get a true picture of your expenses and base your new, proposed mortgage loan payment, after your loan modification is achieved, on your “real” income. I always recommend you simply enter your expenses into Quicken. It’s extremely simple, it’s only $40 and you will know exactly where your money is going. It’s actually kind of fun to enter each payment you’ve made, hear the little beep when your entry is completed, and then quickly and easily run a quick report by category to see where all your cash has gone the past month!
2) Ideally, you’ll want your new mortgage payment after, your loan modification, to equal 31% to 38% of your gross income. If you stay within this target range, your loan modification stands a very good chance of succeeding.
3) Insist on a fixed rate interest loan for your new loan modification. Your goal is to negotiate for a new mortgage with a fixed 30 year or 40 year interest rate so you know exactly what your monthly mortgage will be until your home is completely paid off.
4) Don’t agree to allow any past late fees, past due payments, origination fees or any other garbage fees to be tacked on to your balance after your loan modification.
5) Consider converting your existing mortgage to a 40 year term if it makes sense after your loan modification. A 30 year mortgage is better for you over the long term but a 40 year can make sense if your more able to make your monthly mortgage payment after your loan modification.
6) Make an attempt to get your loan servicer/lender to reduce your principal loan balance. This is much easier when you’re “upside down” on your principal residence. If you owe more on your home than it’s current market value you have an excellent chance of getting your loan principal reduced to something closer to your home’s actual value. Make an effort to get the lender to write off a second mortgage or a second mortgage.
7) Keep records and document every phone call, letter, email; all communications between you and your loan servicer or lender. Always stay calm and be very persistent!
Avoid scams. In virtually all states, a loan modification company must have attorneys managing your loan modification request. Any money you pay for help must be placed in a account until your loan modification is secured to your satisfaction.
9) Finally, remember that there are situations in which it is best to simply walk away. Get rid of it. It hurts but there are times when it’s best to shed the weight and start over. After all, it’s not like you’ll be the Lone Ranger. Millions of us will be paddling in the same boat as you.
With
20+ years in the mortgage loan
and real estate industries, we
have zero doubt our 
