Tips For Homeowners Looking For Loan Modification

It has been long enough for suffering homeowners to rely on lenders or third parties to help them out of their mortgage debts. The unfortunate truth is that knowing who you can trust is getting difficult and even your lender may not be willing to help you find a foreclosure alternative, at first. The fact of the matter is that, as a homeowner, we are responsible for our mortgage debts and finding a solution that works for us.

Helping People Help Themselves

The Treasury Department and Federal Trade Commission have been working hard to better regulate the loan modification and foreclosure alternative industry, but they can’t do it all. The Consumer Financial Protection Bureau has teamed up with the Treasury and FTC to help spread education among homeowners, in efforts to inform consumers about realistic modification alternatives and how to spot scams. Tired of homeowners in need being left behind and even victimized by non-reputable mortgage relief companies, they  have put together this list to help homeowners:

• You have the right to apply to the Home Affordable Modification Program directly and for free.
• You have the right to negotiate a mortgage modification directly with your lender.
• Be cautious of any company that claims they can “guarantee” a loan modification.
• Be cautious of any company that offers to “pre-approve” your HAMP application.
• Do not pay for any services up front.
• Never follow advice to stop paying your mortgage in order to secure a better deal.