Pro’s and con’s of Loan modifications
Pro’s: They work! Loan modifications are wonderful things when they are done correctly. People assume that they are going to lose their home if they can’t make their mortgage payments, but that does not always have to be the case. You do not have to lose your home to foreclosure, there are other ways in most situations to deal with your financial situation.
Con’s: Loan modificatons are not easy by any means. A lot of people look at them as a free way to reduce their mortgage payments for an extended period of time, but that is not the case. You have to do your due diligence on who to choose to represent you and the back and forth game with your lender will get old quick, trust me.
Loan modifications are not free either, you will normally pay between 1-3% of the value of your mortgage in fees to your representative and lender total.
Loan modifications are not instant. From start to finish, you will be lucky to get the deal done within 2 months, so do not expect immediate help by any means.