Guaranteed Installment Loans For Bad Credit Loan Modification Myths - 8 Truths You May Have Been Lied To About
Loan modification myths can devastate a property owner's financial future because they often stop the owner dead in their tracks and the process never gets finished (or even started). Loan mods are not as complicated as people will lead you to believe they are. They do take some skills and those skills can be learned within a a day or two. That day's worth of education will serve the owner for years and years to come because a loan mod typically saves an owner tens of thousands of dollars. There are certainly cases where people don't qualify and even if the owner had to spend a day or two getting educated, they made out like a bandit because they prevented a potential scam for thousands of dollars and actually saved a lot of time because they stopped the process before they started. Knowing the truths ahead of time will give you a real advantage.
Here are 8 myths about loan modifications that you should be aware of:
1. The failure rate is high, I don't want to waste my time: Yes, the failure rate is high, but do you know why? Most loan mods do not work out and the main reasons for that are: 1. The owner had a change of heart during the process and/or gave up. 2. The owner stopped making the payments shortly after settling on the agreement. This can easily be addressed: don't try a loan mod unless you know that you want to keep your property for several years and be honest on your application so that you will know if you can actually afford the property or not. If those 2 issues were handled better, the success rate would be higher than the failure rate.
2. I have to do my own tribal loans online bad credit modification: Actually, you can hire someone to help you. Loan modification attorneys, brokers, and other loan mod specialists do this for a living. They know how to negotiate with your bank, they know how to submit the paperwork properly, and they know how to follow up. The trouble is that there are a lot of scam artists out there and you could lose money. Just be careful in screening these loan mod experts if you do not want to do it yourself.
3. I can't do my own guaranteed installment loans bad credit modification: Nope! It is better that you do it on your own if you know what you are doing. If you do not know what you are doing, get a good book on loan modification or consult with an expert who can point you in the right direction. Just don't take your bank's word for it. They are in it for themselves, and if there is an opportunity to give you a less beneficial deal, they will. Knowing what you are doing ahead of time will save you tens of thousands of dollars.
4. My credit score is too low: Your credit score does not matter. Yes, the banks will likely look at your credit report but they are doing that to verify your expenses and payments. They pretty much expect that your credit is damaged if you are seeking help.
5. I have to live in the property: Banks will modify commercial loans and investment properties. You do not have to live in there but it does help. Their guidelines for investment properties are more strict because they want to make sure they are not being taken advantage of.
6. The process is too difficult: It does take a little time, but it is very clear to see whether or not it is worth your time. Let's say that you get a good book that teaches you how to modify your guaranteed approval loans which takes you 10 hours to read. Then, let's say that you spend 10 hours on the phone, gathering paperwork, negotiating, and following up on your deal with your bank. That is a total of 20 hours. If you saved $300/mo and kept your property for the next 5 years, that would be a savings of $18,000. If you take 18,000 and divide it by 20 hours you would have just made $900 per hour. The reason why people think it is difficult is because they do not know what they are doing. If they learned the process, it would be fairly painless. I recommend grabbing a good book or getting a friend with experience to show you the ropes and then you will not have to feel overwhelmed.
7. The process takes too long: It depends on who is doing it. If you get educated, you should be able to be in and out within 30 days. If you hire a loan modification attorney and pay them in advance, they will have no motivation to get the file done quickly.
8. It is too expensive: Au contraire! Loan mod lawyers, realtors, and other specialists will want you to believe that the process costs $2,500-$5,000 so that you pay them that much. There are definitely experts out there that will charge 1 month's mortgage payment. If your payment is $1,500, then $5,000 looks ridiculous. Well, I have an even better solution for you. You can get free resources from my website from all of the postings, pages, and foreclosure help group on my website, that you may be able to get it done for free and save big money, just from the info on my website. If you want a compact, streamlined do it yourself course on loan modifications, I have that resource there too. This guy charges around $100, but I wouldn't call that expensive in comparison to what you will get in return. Just know that you don't have to pay $5,000 for a loan mod, and if it really comes down to it and you have no money, you will probably be able to figure out a decent plan with your bank.
Even though loan modifications, short sales, foreclosures,dealing with the banks, making decisions and all of the thinking you have to go through may seem very complex, they can be simplified. The main thing is to get someone in your life who you can trust that will give you quality information and will not charge you an arm and a leg for it. Click here to visit my website with a ton of free information, tools, resources, and even a free foreclosure help group where you can ask questions of industry experts.