In considering a refi, a new loan or even in trying to figure out if a loan modification proposal is the right thing here's a list of 12 things to remember:
1. Know your credit score and ask a lender if you qualify for a prime rate loan.
2. Do not ignore your lender’s letters or calls. Inform your lender that you are willing to do whatever is necessary to keep your house.
3. Be wary of anyone who calls, mails you, knocks on your door or posts a sign in your neighborhood offering to rescue you from foreclosure, get you immediate cash, or get you out of debt.
4. Hire your own home inspector.
5. Never sign anything under pressure. Ask questions.
6. Take the time to read everything. Find your own lawyer or take your loan agreement to a HUD approved housing counselor before you sign.
7. Be very suspicious of offers to buy your home and sell or rent it back to you.
8. Don’t stop making mortgage payments. (Unless you've seriously considered it and this is the best choice for you, i.e. giving up the home or you're trying to get the Lender to take you seriously -- but be careful and don't make this decision lightly.)
9. Never make mortgage payments to anyone other than your lender or loan servicer.
10. Watch out for a home-sale contract in which youare not released from responsibility for paying off your mortgage.
11. NEVER sign anything that has blank lines, blank spaces or blank pages! ! ! Information or forged signatures can be added later without your knowledge or consent.
12. Be honest. Don’t ever lie about your income or debt on a loan application (and don't do so during the loan modification process either.)