Did you ever wonder how to get a loan modification from your lender? If you’re facing a financial crises resulting from your home loan, there is no doubt you have. It’s not uncommon for people in this situation to wonder what it would take to get their lender to reduce their interest rate or, better yet, reduce their mortgage principle balance as well.

The doubt and concern will creep in at regular intervals when you are going through the process of trying to get a lender loan modification and you may continue to ask yourself why your lender would agree even be motivated to agree? Why would your lender want to agree to modify your mortgage that will pay them less money in the long term than they are promised now? There are reasons and they are outlined below:

1. Foreclosure is too expensive with court costs and legal fees for lenders. This will eliminate a good portion of the investment for the lender anyway and then they know they have lost a customer on top of it. That is too much too bare for any company.
2. Loan loss reserves. When banks take a loss, they are required under federal law to increase the amount of money they must set aside. This is money they no longer have to lend and that costs them even more money.
3. Auction could sell for much less than value. While your loan modification may agree to less than value the lender still knows that you are a customer and in the long term you will likely be a more loyal customer. This is not underestimated in the business world.
4. Loan modification keeps some of the investment. Instead of the lender losing the investment in court fees, legal fees or money in an auction the lender keeps the money and you all in one. This helps the lender appear to be a community leader in loan modification while not losing a contract on a large investment.

Want to see if you can get a loan modification from your lender? Contact the mortgage modification office of the Law Firm of Thomas J. Sherwood today by phone at 813-612-5697 or 877-246-4486 or by email at sales@tsherwoodlaw.com to find out more!

This entry was posted on Wednesday, February 24th, 2010 at 9:36 am and is filed under Loan Modification Info. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.