Beginning July 1, new loan modification laws have gone into effect that is designed to make the loan modification program work better for the consumer. These new laws have put restrictions on the program in regard to time limits on processing paperwork and monetary qualifications. These new regulations have been put into place because so many people were continuing to lose their homes even after they applied for help.
When the loan modification program began, many lenders granted the modifications immediately to the borrower to later inform them that they did not qualify for the program. Home owners who believed they had found a way to save their home found themselves facing foreclosure again. The new loan modification laws require lenders to pre-approve the borrower for the program before getting the process started.
This will benefit the home owner in many ways. The borrower will be able to know upfront if the modification is a viable way for them to save their homes. This allows them immediate knowledge if they need to seek other forms of help to avoid foreclosure. These new laws also require that the lenders work in an expedient manner and meet 30 day deadlines for each part of the process.
If you are interested in a loan modification program it is wise to seek counsel from a professional modification company. These trained counselors have the knowledge needed to correctly process a modification. They are able to comply with all the new regulations, and in your best interest, make sure the lenders do the same.
With a trained professional representing you to the lender you have a better chance of moving the modification along and having it done right the first time. It is very important to comply with all the requirements that the lenders want so you can avoid denial. A denial could lead to a foreclosure, and that is not what you want.
Loan modifications have been made to stop the housing crisis and allow home owners to get back on their feet. Using a professional service that complies with all the new laws should ensure that the process moves along swiftly, allowing you to bring your life back into sync.