There are 2 types of Loan modification. Civil and Attorney.
Both types of loan modifications should:
- reduce your interest rate to a fixed rate of 5%-5.5%.
- Loan modification should add interest, penalties, fees, etc.. onto the back-end of the loan.
- Finally, you should try to amortize your new loan past 30 years or more.
Civil based loan modifications offer the same services you could do yourself. However, the process requires detailed paperwork, organization and time. So, for a little bit of money, you can have a company do all of this for you. It is quite an emotional relief as well to have a company communicate with your bank on your behalf.
For a little bit more money. (sometimes a lot more money), you can use a
attorney based loan modification company. Although, both companies do the same thing and generally have the same knowledge of State and Federal laws and lending regulations, there is no doubt that banks seem to react more quickly in dealing with lawyers.
A common tactic , that is quite effective in this market, is that attorney based loan modification companies find and prepare sound arguments and founded accusations of predatory lending and threaten lawsuit if the banks choose not to comply with the loan modification.
If you would like to save money and can deal with emotional and time consuming headaches of preparing a loan modification package and working with your lender then you can always try a loan modification yourself.
However, if you have the extra money, it is generally always considered wise to get a qualified attorney on your side.
Contact your bank and a loan modification company to help you through a difficult , but manageable process.
Make sure you work with a loan modification company who is experienced with short sales and bank owned transactions.
One expert in the field is Corey Goldstein. If you are outside of Arizona and need help or advice call Corey Goldstein Today.
Copyright © James Wexler *Loan Modifications in Phoenix AZ - Civil vs. Attorney *
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