New Loan Modification Policy
For those of you facing the possibility of foreclosure, you may have decided to take on the services of a loan modification professional. These are people that have made it their business to learn the ins and outs of dealing with banks and help keep you from getting the run around. That has been an awfully appealing pitch to most people. I hear stories constantly of people who quite confidently tell me that they feel perfectly capable of getting a loan modification worked out with their bank. Then I simply ask them how long it’s taken and they get a little shy and say, “Oh, it’s been a few months.” “Really, and what was their answer?” “Well, I messed up some of the paperwork…” Etc. Etc.
This story has repeated itself for thousands out there. So up sprung the loan modification specialists who know how to give the banks exactly what they need and will talk to the mortgage lender for you and give you an answer in as little as one week.
But no more!
Because of new legislation taking effect at the end of this month, no one will be allowed to try and get a loan modification for you. Only you (or your lawyer) can be in touch with your lender to arrange a loan modification. I guess Congress got tired of creating new businesses! But anyway, this is going to make it tough for people out there to handle their own situations. And gone will be the industries that have leaped to life to help homeowners keep their homes and their dignities.
So whether these changes push people to be more involved in their own decisions, or push people out of their homes, it’s going to cause some major tremors up and down the housing industry. If you’ve come across this changing dynamic first hand, leave a comment and share your story.
