Mortgage Loan Modification Answers

by Jenny from USA

Looking For Mortgage Loan Modification Answers: Hi Kate, I have been looking into a mortgage loan modification and we are finding that there's a lot said by a lot of different people. It's really hard to know which direction to go.


I went to your website and clicked on the Loan Modification tab to check it out. It spurred more questions so I thought I'd contact you.

My husband's company froze raises and bonuses as of the first of the year. We counted those bonuses as income, after all they came steadily for seven years. But now we are in a position where we are down to the penny on our budget with no fudging room.

We've already trimmed the budget, we've just adjusted the withholding at work to $50 monthly, and we're one situation away from being delinquent on something.

Of course our property value has declined so much that we're upside down in the house. So here we sit.

The options I have found are:

1-- Pay someone (the people that called today charge $2400. $1400 to plead your case and $1000 if they are successful)

2-- Go through a HUD approved agency

3-- Contact the lender directly

4-- Do it yourself

Option 1 says they can most likely get us a rate of 3 to 3.5 percent for the first 5 years and then it steps up 1 percent per year until the 7th year and then it does its final adjustment to between 5 and 6 percent.

We've already submitted paperwork to option 2. We thought it would be better to go this route because they are HUD approved.

The lender's website says to contact them if you are having trouble and they have all sorts of forms for you to fill out. Again, we thought we'd do better with HUD.

I've never thought about doing the mortgage loan modification myself until I went to your website.

So here's the question. Which is the best way to go? I don't care so much about paying the money if it's legitimate. But if we can get that interest rate somewhere else or by ourselves then so much the better. Any thoughts or suggestions for us?

Kate Answers: Mortgage Loan Modification Answers

Hi Jenny, Many homeowners have been writing asking for an alternative to paying thousands to a loan modification company and that was my motivating factor for offering a way to do it yourself.

Read about mortgage loan modification here where afterward, you can decide if it is right for you.

You will also want to read what other Readers have asked me regarding the subject of loan modification, followed by my help and suggestions at Ask Kate About Your Modification.

I hope you'll come back to my website again in the future to report on the success of your mortgage modification. So remember to bookmark Get-Your-Best-Mortgage-Rate to your favorites and visit often for up to date tips for buying a house, mortgage news and refinancing advice.

You can also invite friends to comment on this page or create a page of their own like you did.

Best Wishes,


P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.


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