There are 7 ways to modify the terms of a mortgage, and the relationship of different actors: owners, lenders, lawyers, consultants, trustees, government agencies, etc; are different for each solution. In general, though, loan modifications are the most personal of the 7 available forms of relief. State and federal governments are not involved in a loan modification, even though they’ve passed numerous laws providing incentives for lenders to negotiate with you. A loan modification is, at is very essence, a negotiation between you and your lender for a change in one or more of any mortgage’s 5 terms.
It’s Personal, and It Should Be
This is your future, and your financial well-being. No one is better positioned to advocate for you than yourself. And if your personal situation qualifies you for one of the many government assistance programs encouraging loan modifications, than you really are better off pursuing the modification yourself. But if your situation places you outside the government threshold (a total mortgage debt greater than $729,750), than you may need a professional team like Able Financial Solutions to help you collect your bargaining chips for the negotiation with your lender.
Wait, negotiation? Does this mean I have to sit down at a table with my lender?
Of course not! The loan modification process is actually nothing more than the back-and-forth submission of various documentation between you and the risk mitigation department at your lender’s corporate headquarters. However, we feel that you must approach the modification process as if you were going to sit down at a table with your lender. You need a calculated strategy that will maximize your bargaining position, assert leverage over your lender, exact the greatest number of concessions on your new mortgage. If your situation places you above the current threshold for government-assisted modifications, than your initial bargaining position could be quite weak. That is where Able Financial Solutions comes in. If your initial case for a loan modification doesn’t appear strong, we can provide you with the tactics you need to make your bargaining position stronger.
Read about the loan modification process here to get a better feel for the nature and the timing of what you’re about to go through.