May 11, 2011 (Powerhomebiz.com) For millions of homeowners struggling to pay their mortgage, many are faced with another disaster: falling home values. When borrowers see their equity continue to dwindle uncontrollably below the current value their home, many make the painful decision to simply walk away rather than fighting to stay afloat and keep their home. It’s called being “underwater” or owing more than your home is worth.
Recently, loan modification programs have become a primary rescue effort as a way to help these homeowners. It gives them a way to regain a foothold with their mortgage so that they may keep their home. A loan modification involves the lender and the mortgagor reaching a mutual agreement to adjust the original terms of the mortgage to a more acceptable arrangement that the homeowner can afford. Unfortunately, these programs can be expensive and often fail to help the homeowner with their situation.
How does this happen? There are a number of reasons. First, some of the loan modifications companies who engage in these programs are more interested in collecting up-front money than actually providing an honest service to the homeowner. What commonly occurs is that some of these companies promise help, collect substantial fees in advance, and then inform the individual that they do not qualify for a modification of their mortgage. Of course, the fees are non-refundable.
Another common mistake with these programs is that the homeowner does not adequately know what they are getting into, or what will be expected of them. They pay the fees out of desperation, holding out hope that somehow it will all work out. Homeowners need to have the ability to demonstrate to investors and lenders that modifying their current loan is more cost-effective than foreclosure.
Wouldn’t it be better to know ahead of time whether you could qualify for a loan modification, before you spend the money? This is vital to know because if you don’t qualify for the new terms, then the modification could be denied, anyway. The decision whether to apply is 100% up to you, but having guidance and well prepared can save you time and money, and increases your chances of approval for a loan modification.
There is a system that can help you track your qualification, requirement, and help you create your loan modification package online. T Knowing whether or not you can qualify has the potential to save you thousands of dollars in wasted fees. And if you qualify, this loan modification software can tell you what will be required of you to do so. It is an effective and important step to see if you can keep your home.
To learn more, please visit the https://www.mycaal.com
Carla Ghosan is CEO & Founder at Caal, Inc. Goal oriented professional with 10+ years experience in Sales, Business Development, and Venture Capital. Heavy networker and deeply tied into the management and executive ecosystem in Silicon Valley with knowledge in: Internet, Mobile, Social Media, Software, & Hardware. Previous jobs include positions at Sun Microsystems, Marvell Semiconductor, and Yammer.