The Truth About Loan Modification

It is no secret that the rate of foreclosures is on the rise across the nation. This phenomenon is also creating an exploding industry where many are profiting off the lack of education or misleading education of those in need. As a Certified Loss Mitigation Specialist with freedom foreclosure prevention services. I feel it is important to share some insights into an area that is becoming widely popular and misunderstood by many.

I am speaking of “Loan Modification”. The initial intent of this service is to help a homeowner who may not currently be able to afford their monthly payments and or is behind on their mortgage to reduce the amount they are paying monthly, reduce the principle on the entire amount due or a combination of both. The problem is that most loan modifications being done are being done to help the lender NOT the borrower!

In California, an epicenter of the mortgage crisis, only 1.3 percent of loan modifications struck between January and May this year involved a reduction of principal, according to the state’s Department of Corporations. A total of 356 of 21,359 loan modifications in the month that ended May 17 involved a cut in the principal balance.

The key to benefiting from Loan Modification is to remember the ultimate objective. If you can currently make your regular payment, but you can’t catch up with the past-due amount, then you should use loan modification techniques or service providers to negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time.

If you are unable to make payments you should have a loan modification service negotiate with your lender to extend your loan for a longer period of time, modifying the loan amount to a more affordable level. A Loan Modification will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately. In addition the techniques used can be easily learned and implemented yourself if you choose to invest the time and a little money in your education.

There are three likely results from an effective Loan Modification Program. I would make sure that whoever you choose is able to provide each of these outcomes depending upon the situation.
A) A reduction of principal, and interest and elimination of late fees with a lower monthly payment.
B) A reduction of interest, with elimination of late fees.
C) The ability to accept a deed in lieu of foreclosure so the property can be sold to someone else and the owners walk away with no liability.
D) The initiation of bankruptcy to forestall the sale of a home at auction.

One additional benefit of loan modification and how you can profit from it is by providing the service to others. I recently ran across a program offered by a consumer advocate who authored a course that teaches you not only how to perform loan modification services for yourself or a family member but how you can do some of or none of the work and get paid for helping others.

The program includes everything you need to start your own successful loan modification business and you can keep all or a portion of the profits generated. Richard Geller has developed a comprehensive method and approach towards loan modification that has the potential to provide you with a lucrative business opportunity if you spend some time and educate yourself. You can get more information on the Loan Modification Program and Richard Geller by visiting http://www.realloanmodification.com/