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I am Upside Down in My Mortgage. A Loan Remodification Company is Offering to Help. – Danny

I apologize in advance for the short response. I am currently away on vacation with limited internet but wanted to give you an answer as soon as possible. Steve

“Dear Steve,

I am upside down in a mortgage as most everyone else is. I owe 301,000 on a house that is wort about 200,000 according to the comps in the neighborhood. I have someone who told me about a loan remodification program and states they cn reduce the principle on the home and save me around $400. Is this a good deal and is it possible to do that? The cost to do the loan modification is $3000. Can you help me?

Is a loan modification a good idea on a home I owe $301,000 on but only worth $200,000 or a ripoff?


Dear Danny

Most legitimate loan modification programs don’t actually end in modified loans that make a substantial difference. Those that are modified, if the monthly payments are reduced it is usually becuase of a reduction in interest or extending the loan out further. That can shrink the monthly payment a bit. See “Loan Modifications. More PR Than ER. 57% of Monthly Payments in Modified Loans Are the Same or Higher.

You should contact your lender directly to see what modifications they can make available to you.

Unfortunately, until bankruptcy judges get the authority to cramdown and modify mortgages, all actions at this point are going to be at the will and willingness of your current lender. No outside third-party has any authority over your loan except through your lender.

Your situation is why many people are feeling forced to walk away from their mortgage, go bankrupt to end their liability, and start over.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

READ  I Gave $1,000 to a Loan Modification Company and They Went Bankrupt. I Am Five Mortgage Payments Behind. - Vic

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

1 Comment

  • Great answer and I would like to add to that, there’s a free informational ebook and video that explains how to payoff your mortgage in 90 days so you wouldn’t have to worry about being upside down ever again? It’s great information and a helpful tool if you find yourself upside down.

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