Megan McGinnis' Blog–Get Connected!

Loan Modifications-Do it Yourself Pros and Cons

Many people who need loan modifications don’t have the money to pay upfront or on the backend so they end up trying to do the negotiations themselves.  There are pros and cons to this strategy and let’s explore that here.

Pros:

1. You don’t have to pay someone money you don’t have.
2. You know what work is being done on your case because you are doing it yourself.

Cons:

1. You don’t know the all important ratios that banks are looking for.  Each bank has its own criteria and it’s very difficult to get that information.
2. Once you supply the bank with your income and expenses they’ll do their own analysis to decide if you qualify under their guidelines.  If you had known in advance what numbers they were looking for you could craft the best profile to fall within their guidelines.  Once you give them your numbers, it’s pretty hard to take them back when you don’t fit in their profile.
3. You don’t know the finer details of the negotiation so you don’t know if you could have negotiated a better deal.  You might not even realize the deal they are offering you is a bad deal because at first glance it seems like an improvement.
4. It involves a lot of phone calls.

But should you decide to attempt it on your own, it might be smart to do a bit more research and this gentleman comes highly recommended.  He’s a real estate agent in my neighborhood and a real estate investor himself.  He was able to successfully negotiate for himself 5 modifications on investment properties and his primary residence.
Check it out Here!

Thanks for stopping in and I hope you found this useful.