“Dear Steve,
Hi my name is Cindy. I tried several times to modify my mortgage loan to a lower monthly payment with my bank. Unfortunately, my bank dined me every time afterwards, they insist I try again later. I began to search for other means to have my mortgage modified. I came across the following companies. Blank? Law Group which stated that they are a part of State Law Group and Blank? Mortgage referred me to view a site call Mortgage Alert.
I am considering both companies in helping me, but both require some money up front. Blank? Mortgage is not asking for money up front, but prefers homeowners/me to view the Mortgage Alert site and pay the fee after the test is over. I need help? I want to keep my home. We brought our home from inheritance left by my decease husband. We put down over $75,000. as a down payment then another $25.000 for repairs. Please help? I have been trying to modify my loan since 2008 moreover; I recently got behind in my mortgage payment this year.
Cindy”
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The Answer
Dear Cindy,
Since I have no idea what companies you are talking about, follow this advice.
I urge you to follow my two guides to evaluate your choice of any company.
- The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
- How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off
You can look at the related articles section of this post to see what has been written about them in the past. The comments on any relevant post may be enlightening as well.
Mortgage Help
Be sure to first read How Not to Get Scammed by a Mortgage Loan Modification Company.
Debt-to-Income Calculator
First you’ll need to determine your current debt-to-income ratio. The target debt-to-income ratio under the Home Affordable Modification program is 31%. Use this free online DTI calculator.
Mortgage Modification Calculator
The mortgage modification eligibility calculator will ask you several questions and then show you which programs you may be eligible for.
The free mortgage modification calculator can be found here.
Free Mortgage Modification Help and Counseling
If you have questions about the process or eligibility you can call 888-995-4673 and get connected with an mortgage modification adviser for free. This help is provided by government subsidized HUD Housing Counselors and they can be a big help in navigating the modification process.
In order to assist you, the housing expert will need to gather some information from you. Have the following documents handy:
- Information about your first mortgage, such as your monthly mortgage statement.
- Information about any second mortgage or home equity line of credit on the house.
- Information about the monthly gross (before tax) income of all household members contributing to pay the mortgage, including recent pay stubs if you receive them or documentation of income you receive from other sources.
- Information about your savings and other assets.
- Account balances and minimum monthly payments due on all of your credit cards.
- Account balances and monthly payments on all your other debts such as student loans and car loans.
- Your most recent income tax return.
- It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.), if applicable.
You can also get free help and housing counseling from a local HUD approved counselor. You can find your local free housing counselor, here.
Contact Your Mortgage Company
Not sure if your mortgage company offers modification programs? Not all do. You can contact your mortgage company to ask them about mortgage modification programs you might be eligible for. Click here to find your mortgage company.
NPV Calculator
Want to know the net present value (NPV) of your home for the mortgage modification process? No problem, use the free NPV calculator to find out. The NPV calculator is right here.
The calculator can be used by homeowners who have been denied a HAMP modification because of their NPV result or can also be used by homeowners prior to applying for a HAMP modification to help them better understand the NPV evaluation.
No Advance Fees
The Federal Trade Commission has a Mortgage Assistance Relief Services Rule which prohibits advance fees for mortgage rescue services or mortgage modification help.
Please post your responses and follow-up messages to me on this in the comments section below.
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