Loan Modification- What I would tell mom to do?

Everyday I get call’s from homeowners who do not know what to do? They are behind on their mortgages, owe more than what the house is worth, lost their job, you name it, I heard it.

Because of so many people trying to take advantage of stress out homeowners, from realtors, lenders, lawyers, investors, scam artist, who do you trust?

I say trust yourself and your instinct! If it sounds to good to be true…..well you know the rest!

Let me tell you what I would do if you are considering loan modification or behind on your payments?

I will tell you exactly what I would tell my mom if she was in this situation.

1. “Mom, first thing thing to know is that the Governor Arnold “The Terminator” Schwarzanegar made it illegal for anyone to charge upfront to do your loan modification, even lawyers! So if anyone tell’s you they can keep you in your house just pay them “X” amount of money! Hang up the phone! Period. End of discussion.”

2. “Mom, I know you do not want to do this, but let’s call the lender, let them know what is going on and ask for help?” Yes, your lender will try to help you right or at least point you in right direction.

3. Go to website http://www.makinghomeaffordable.gov/ and read about loan modifications and call 1-888-995-HOPE and get free help!

4. You need to understand right now, if you do not have an income, lost your job, or make very little money, you are not going to qualify for loan modification. The lender is not going to let you live in home with $300K plus mortgage if you are make $1200 a month(example).  If just doesn’t make sense to you it’s not going to make sense to the bank.

5. Once you have spoken to Lender and HOPE program, have a serious discuss with spouse and family does it make sense to stay in this home. Do you 100K more than it’s worth, do you need a bigger home? Is your neighbor in bad shape? Ask all these questions.  Great article in USA today that has this discuss read now click here

6. If you are already behind on your payments in foreclosures, contact your family attorney now that specializes in real estate and  ask them to review your paperwork to find out what are the ramifications for you both legal, and financially.

If you do not have a family attorney or cannot afford attorney. Seriously consider getting a Pre-Paid Legal membership so you have unlimited access to law firm to help answer questions and review your paperwork.

You can watch a video about the Pre-Paid Legal Membership Here and sign up right online cost is only $26 a month!

Fulls disclosure: We do earn a referal fee for referring you to Pre-Paid Legal. However, it has to be the best value in this time of need for homeowners. And yes our entire family owns a membership. If you do want want us to earn a referral fee just look for a local rep in your area.

If you have any questions on the memership call our offices (909)512-6418 we be happy to answer any questions you may have in regards to membership.

Lastly, in all honesty is that this shall pass and good times are ahead.

The reason I am passionate about this we our family went through the short sale process when we decided to sell our home, I understand the stress and worry that your family is going through and what ever your believe is, God will get you through this challenging time in your life!

Your friend,

Carlos Samaniego
(909)512-6418