AgentIndustry News

Loan mod: Go it alone?

Part 2: Nuts and bolts of mortgage modification

Editor's note: This is Part 2 of a two-part series. Read Part 1. Last week, I went over the steps involved in getting a loan modified. This article examines which, if any of these steps, may require a borrower to seek help. The bottom line is that many, perhaps most, borrowers can handle it all themselves, but some may need an assist here or there. And some may want to delegate the entire responsibility. Negotiating the Deal: Firms hustling for modification business sometimes pretend that they have the knowledge and skills needed to negotiate a favorable deal with the loan servicer. In fact, a modification is not negotiated -- it is granted (or denied) by the servicer, applying rules or principles set out by the investors who own the loans. In the case of modifications under the Making Home Affordable (MHA) program, the rules are set by the federal government, but these do not override investor rules. If the documents governing the servicing of a particular loan -- known ...