Whats the best first step in solving a mortgage problem?
When a homeowner can no longer meet the payments on his or her mortgage, the best first step is to candidly discuss it with the lender. In many cases, a modification of the loan can be worked out, making the payments more affordable. This is better than letting the property slip into foreclosure. However, most mortgages that are modified by lenders fall back into delinquency within six months, said John Dugan, head of the Treasury Department’s Office of the Comptroller of Currency. Nearly 53 percent of modified loans re-default. But trying first to resolve the problem with the lender is always a good idea. A word of caution: An increasing number of firms are hanging out the shingle that says, “expert mortgage modifier consultant.” For an upfront fee of up to $3,000, they claim to help negotiate a modified payment schedule. In most cases, it’s more productive for the homeowner to personally discuss and negotiate the modification directly with the lender. The last thing a struggling home
