5 Insider Loan Modification Tips Reveal How to Force the Bank to Cry Uncle

Are you late on your mortgage? Has it been weeks since you got a good nights sleep? Do you feel you really messed up bad and have let a lot of people down. Do you want to save your home?

The obvious answer is Yes, you do want to save your home. Otherwise you wouldn't be reading an article about 5 Insider Loan Modification Tips now would you? Lets think things through a little further here.

What is your largest investment ever? If you are like most of us, it's your home. What's it worth? $100? $10,000? More likely your home is worth hundreds of thousands of dollars. Which brings me to the question, "What are you doing trying to learn tips on the Internet?" This is not the time to be cheap.

Do you know anything about doing a loan modification? Anything at all? If the answer is "no" or "a little..." then you need to wake up. You are risking a QUARTER MILLION DOLLARS and you don't know what you are doing.

Tip #1 - Get Help

Are you thinking you are going to go this alone and negotiate with the bank yourself? How did that work out last time? What you have to understand is the employees of the bank aren't working for you, they work for the bank. Their job is to get the bank the best deal they can. This is their job and the better they do it, the better they get compensated. They do this all day, every day. Anything you do that much you get pretty good at. How many time have you done this before? Do you really plan to still do this on your own?

Tip #2 - Get Help

OK, I'm going to ask you a couple of questions that a banker might ask you.

• What is your front end ratio?
• What is your total DTI?
• Do you have any positive equity in your home?
• What is the loans LTV?
• Have you filled out the VOE's?
• You told us three years ago you could make the payments, now you say you can't. What happened?"
• Why should we believe you?
• Aren't you really doing this because you made a bad decision a few years back and now you want us to bail you out?

To a banker this is pretty basic stuff. We all know that the front end ratio is your total income divided by your house payment and is expressed as a percentage. Your DTI is the Debt to Income ratio and means your total income divided by all your debt including your credit cards and house payments and any other payments like car payments. If you didn't know these things, you can see why you are probably going to lose your house. Do you know HOW to answer the hard questions? Are you beginning to see the problem? You need to follow Tip #3. Tip #3 is probably the most sensible thing to do. Can you guess what it is?

Tip #3 - Get Help

You've probably read that all loan mod specialists are scams. This just isn't true. There is a whole industry of people out there who make it their business to help someone save their home from foreclosure. Some are very good at what they do and boast success rates in the 90% range. They do their jobs well and expect to be compensated. Generally speaking they will charge between $3000 and $4000 or they may charge a percentage of the homes value. Think about what your home is worth to you. What would it be worth to save it from foreclosure and negotiate a comfortable payment?

For some people it may be worth $5000-$10,000 if they really loved the house and were certain they would never be able to buy one like that again. Maybe there is some sentimental value that goes along with the home. Three thousand would seem like a bargain.

You may agree its worth it but still don't want to take a chance so you think you are going to do it yourself. All I can say is at least you are trying but your odds aren't good. You should think about what is the best way to increase your likelihood of success? There are free loan modification programs to assist you, not do it for you. These are generally set up by government or non-profit organizations. There is a lot of hurry up and wait with government type agencies. If you take the non-profit route, I hope you are really patient.

Tip #4 - Take an online loan modification course

If you insist on doing this yourself, at least arm yourself with the best and most ammunition you can. Learn about the loan mod business. What are the banks looking for? What are some tried and true success methods others have used? What should you never say? What should you say when they say...?
These are things you should know before negotiating with the bank, not after. If you know exactly what they are looking for, show them how you meet the criteria and verify it, how can they turn you down?

Tip #5 - START RIGHT NOW!
You have been putting this off long enough. It may be too long already. There is a point of no return where no matter what you do or say, you are going to lose your home. It's inevitable. You must give the bank plenty of time to do what ever it is banks do in this situation.

At this moment, your frame of mind should be "I can do this! Let's get started now!" It feels very good when you actually commit to doing something positive in your life. Its the uncertainty; the not-knowing whats going to happen next that gets people depressed. You should feel empowered that you have decided to take control of your life and stop letting people push you around.

Let me be the first to with you Good Luck on your loan modification and congratulations on taking charge of your life.