Should you go for loan modification?

Loans

Lender representatives will always contact you about loan modification

Just because a lender’s representative calls you to notify you about loan modification options available doesn’t always mean that you are eligible or will be approved for the product. Loan modification is offered to borrowers before a loan is referred to foreclosure, or before a foreclosure sale is scheduled. Just because an agent contacts you in regards to loan modification doesn’t always mean that you will be approved, or that it is a great idea for you.

Loan modification will take forever

If you are planning to take up loan modification, you should not do it after you have been notified of foreclosure. The approval and trial process take up a lot of time, which could see you lose your home. Lenders will require different types of documentation, which may be even more detailed than those required by your mortgage application. Combining this with a lengthy trial period makes loan modification valueless for people faced with imminent loss of their home.

Your lender may not provide all necessary information

Loan modification is difficult to get approved for. The process is time consuming and thorough. Your lender may even avoid providing all information, which could contribute to you losing  your property. There are different government programs designed to help people facing foreclosure from losing their homes. However, unfortunately, not all lenders will provide this information.

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