I apologize in advance if there is a similar post on this site. I looked but did not see anything.
I have been approached by a lender with whom I previously tried to re-finance with to do a loan modification. According to the Modification Officer I am a perfect candidate for a loan modification. I am not currently late on either my first or second but my homes valued has decreased along with everyone elses and my first is an ARM which is due to adjust in the next two months. The rate on my first is over 9% and my second is at 12.5%.
My first question, is it prudent to pay this company 3K to do the loan mod for me or am I better off doing it myself? They make no guarantee of success although they claim to be able to get over 90% of their applicants modifications.
My second question is according to the guy I have been speaking to once I file for modification the lender cannot report me as late to the credit agencies or proceed with foreclosure proceedings under HR 5579. Is this true? He stated that most people use the first month of non-pament to pay their 3K fee.
Again I apologize if this is a redundant post. Any help with my questions is greatly appreciated.
