What's the going rate for getting someone to negotiate a mortgage modification for you?

I’ve been approached by a company that negotiates home mortgage modifications. This is not a refinance. What they do is approach the holder of your existing mortgage and negotiate new terms—which, in my case, would to change my adjustable rate mortgage to one with a lower fixed rate (probably over 40 years).

Apparently, the sub-prime crisis is motivating a lot of lenders to restructure their loans on more favorable terms so as to reduce the risk of foreclosure. The catch is this company wants $4,000 to do something I could theoretically do myself. The thing is, I might not be able to get as good a deal as they can, since they do this all day long and presumably have some expertise.

I suspect they might be willing to come down on their fee if I asked them. So my questions are, 1.) Are these offers legit, or are they just another predatory scam? 2.

) Do they really get you a better deal than you can get yourself? And 3. ) If they can, what is a reasonable fee for this service?

Asked by Zuma 38 months ago Similar questions: rate negotiate mortgage modification Business > Financial Services.

Similar questions: rate negotiate mortgage modification.

Take Control of Your Finances and Negotiate Your Own Mortgage Modification Everyone is talking about mortgage modifications. Since it is a new trend and a major moneymaking opportunity, many companies have popped up that will help you get your mortgage loan modified. How do you know what one should be trusted?

If everyone is offering to do it for free, how hard can it be to do it yourself? For your fathers and grandfathers, visiting the bank was a very momentous occasion and the banker was a very imposing, intimidating person. For some, this feeling of being overwhelmed or in awe has continued.

What must be remembered is that the borrower is the customer. Professionals are not people to be put on pedestals; they are service providers. A bank makes a lot of money from a mortgage.Do not be intimidated, this allows the bank to control the finances and in the case of a mortgage loan modification, you might not get everything you need.

If you are going to do your own home loan modification you need to learn some important things:* How do you start? * What institution will handle your loan? You need an accredited institution that is endorsed by the government and one that has a good reputation.

A large bank is your best bet. Remember you are not making a commitment, just investigating your options. * What will you need to complete the application?

Get all the forms, read them carefully and then ask questions. Don't just get started right away, you want to know what you are facing. Again, you don't have to make a commitment at this point.

* Work out an itemize budget. This is part of the application process. You have to prove to the bank you are really trying to make your payments but cannot.

Be realistic and be honest, a bank will know if you are manipulating the numbers. * Shop around. * Find the lowest interest rate.

You want to get the best rate, so inquire at several banks. A reduction by one percentage point will save your thousands of dollars over the term of the loan. * Have someone review the contract.

This is the one area you really need to get another opinion. Look for a lawyer with a good reputation and pay them for an hour to look it over. They understand contracts and can find loopholes.

It is possible to do your own loan modification and you feel better having taken control of your own financial situation rather than letting the bank dictate it. The biggest threat in the midst of difficult times is a feeling of helplessness and you do not have to be helpless. Sources: http://www.articlemonkeys.com/Art/7203/226/Take-Control-of-Your-Finances-and-Negotiate-Your-Own-Mortgage-Modification.html .

Part 5- Loan Modification 101- Negotiating new loan terms as part of your loan modification If you’ve gotten this far, congratulations! It means you’ve been approved as a loan modification candidate and the bank has or will be making you an offer very soon. This post will cover some ways to negotiate with your lender to get the best possible modified terms for your new mortgage.

What to expect from your bank offerIf the bank does approve you for a home loan modification there are a few constants that you must be aware of: * The bank will not write down the principal balance of your loan, they will adjust your interest rate to lower your payments, but you’ll still owe the same amount on your mortgage. * The bank will not waive late payments. These will usually be added to your principal and tacked on the back of the loan.

* The bank will require a good faith payment ranging from one to two month’s mortgage payment as a sign of good faith that you’re committed to the mortgage. * The bank will demand that you have the ability to afford a reasonable market interest rate as part of your modification. (You won’t be negotiating for 1% when the going rate for a 30-year fixed is 6.25%.)What you can negotiate * Interest rate.

Your interest rate will typically be reduced between 2% and 4%. If you’re interest rate is currently 9% after an ARM adjustment, you can negotiate for a 6% 30-year loan fixed for 5-years no problem. You will have problems negotiating for a 3%.

It’s not going to happen. * Post-modification adjustment cap. After a fixed period (typically 5 years) your modification will expire and your rate will become adjustable again.

You can negotiate the cap of your adjustment. Say if you agree to a 6% loan you can negotiate a cap at 8% or something similar to protect you from a similar reset disaster in the future. * Good faith payment.

Every bank will require a good faith payment of some sort to get caught up with delinquent payments before they go through with a loan modification. This is typically one to two months of mortgage payments. If you’re in a bind this may not be feasible.

You can often negotiate this down to half a mortgage payment. Either way you’ll need to make some sort of payment – be prepared for that. Take yourself out of the equation emotionallyYour home is an emotional asset.

Your family lives there, it holds your memories, etc. Do not let you emotions get in the way of negotiating. Use these tips to be a better negotiator with the bank: * Have a game plan. Have a hoped-for mortgage payment and interest rate so that you know what you’re negotiating for.

Stick to your guns and be firm on the terms so you can get the best deal possible. * Keep a calm demeanor and realize you’re working with another human who can either help you or make your life hell. Work to make them want to help you more.

* Be polite, yet assertive. If you don’t agree with something speak up and voice your objection. Be polite, but know what you want and stick to your guns.

* Appeal to people’s sense of fairness. Use terms like “doesn’t that seem fair? ” or “isn’t that reasonable?

” People have a hard time objecting to something that seems fair or reasonable. * Get something if you’re asked to give something. Quid pro quo is fine here.

If you’re asked to give something up (like a slightly higher monthly payment) then ask for something in return – a lower good faith payment, for example. * Document everything. Don’t get stuck in a game of he said, she said.

Write down offers so that you have a record of what’s on the table at any given time. * Elevate to a decision-maker. Feel free to ask to speak to a manager or supervisor if you’re dissatisfied with your progress.

Negotiate to a point where you’re in the target range of your hoped for mortgage payment and interest rate and good faith payment. Once you’re there take the offer. No need to get greedy when your home is on the line.

Next we’ll talk about wrapping up your loan modification. Next Step: Part 6- Loan Modification 101 – Finalizing your loan modificationFor more information visit: http://www.blogbythebay.com/mortgage/part-5-loan-modification-101-negotiating-new-loan-terms-as-part-of-your-loan-modification/ Sources: http://www.blogbythebay.com/mortgage/part-5-loan-modification-101-negotiating-new-loan-terms-as-part-of-your-loan-modification/ .

1 Sounds like a scam to me. I'd try talking to your mortgage holder first. I think it's pretty unlikely that these guys could negotiate any deal that would justify a 4K fee.

Sounds like a scam to me. I'd try talking to your mortgage holder first. I think it's pretty unlikely that these guys could negotiate any deal that would justify a 4K fee.

2 If they want the money up front, then I can essentially guarantee it's a scam. Even if they're legitimate, though... there is legislation being worked to make this easier. I don't know if it's necessarily a better deal than you could get right now, but it might be, if the Treasury is going to throw money at the problem.

And even if it IS a better deal, I suspect it's probably not more than $4k better. If it IS a crisis... well, that's why there are scams, because there are people in crisis. I'd definitely try to do it yourself if at all possible.

The really screwed people are the ones who just can't do that, perhaps because they're working two jobs just to keep up with what they do have.

If they want the money up front, then I can essentially guarantee it's a scam. Even if they're legitimate, though... there is legislation being worked to make this easier. I don't know if it's necessarily a better deal than you could get right now, but it might be, if the Treasury is going to throw money at the problem.

And even if it IS a better deal, I suspect it's probably not more than $4k better. If it IS a crisis... well, that's why there are scams, because there are people in crisis. I'd definitely try to do it yourself if at all possible.

The really screwed people are the ones who just can't do that, perhaps because they're working two jobs just to keep up with what they do have.

3 Just for the record, I read something in today's (Oct 29, 2008) news that the FDIC is going to organize some sort of effort to renegotiate mortgages for the 2-3 million people who can not afford the terms of their current mortgages. This will help cover any concessions the companies give up, and will ensure that the foreclosures stop.

Just for the record, I read something in today's (Oct 29, 2008) news that the FDIC is going to organize some sort of effort to renegotiate mortgages for the 2-3 million people who can not afford the terms of their current mortgages. This will help cover any concessions the companies give up, and will ensure that the foreclosures stop.

" "Who is the Managing Partner of GrowthField Financial Services" "My 88K IRA is now 22K I'm 56. I cant afford my upsidedown mortgage. Lender won't negotiate.

Cashing out 4 my funeral :(" "Am I an idiot to keep paying my mortgage?(What is your opinion on this article and the current financial situation?)" "How do I shop for a good mortgage rate? " "I locked a mortgage rate and now rates are dropping. Am I obligated?" "â?

¢ Which financial institution in Lancaster County, Pennsylvania, has the lowest 15-year mortgage rate? " "can I negotiate at carmax.

Does community mortgage services in mi exist.

Who is the Managing Partner of GrowthField Financial Services.

My 88K IRA is now 22K I'm 56. I cant afford my upsidedown mortgage. Lender won't negotiate.

Cashing out 4 my funeral :(.

I locked a mortgage rate and now rates are dropping. Am I obligated?

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.