Think of your lender as a casino that wants your money. You want to win, but odds are you’re probably going to lose your shirt.
(Source: US News) – If you’ve ever been significantly behind on a loan, you’ve probably been asked by a customer service representative if you’d like to apply for a loan modification. You will then hear that a loan modification will lower your monthly premiums and stop the incessant phone calls demanding that you catch up on your payments. What’s not to like?
Indeed, there can be a lot to like, but you may come to loathe a loan modification, too. While it may look like your lender is throwing you a lifesaver, it may actually be an anchor. That doesn’t mean you shouldn’t take a loan modification. But before you jump at the chance, consider all of the angles.
The lender is going to come out on top. That’s almost inevitable. It might be helpful, when you’re thinking about a loan modification, to pretend that you’re in Vegas. Think of your lender as a casino that wants your money. You want to win, but odds are, if you aren’t careful, you’re going to lose your shirt.
My name is Maurice “Moe” Bedard. I am the founder of America’s #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.