Forbes quotes Loan Workout Specialist that says “Go delinquent to take advantage of the Obama Mortgage Plan!”

Click here to read the article in its entirety.

When I read an article like this It kind of makes my stomach turn.  Not because the information is incorrect, but because there is missing information.  I’ve never encouraged any of my clients to go delinquent on their mortgage to get a mortgage bailout.  With that being said, sometimes it’s just not possible for them to stay current and I encourage them to send in what they can.

The main problem I have with this article is that some homeowners may read it and do no further research before they go delinquent.  Unfortunately, there is no guarantee for a loan modification, or the Obama Mortgage Plan, and the homeowner could put themselves into a terrible position if they don’t get the help they are seeking.

When this happens they get desperate and start searching for an answer.  This is where they usually find a Loan Modification company that markets themselves as a company that can solve the homeowners problems with the Obama mortgage plan.

Most homeowners will go to Google and search for what they are looking for.  A high percentage of those homeowners will end up clicking on a paid for advertisement that promises to solve the problems they are facing.  Now, there are a lot of good companies out there helping homeowners but there are also a lot of predators that are taking homeowners money and doing very little for them.

This makes it hard to be a struggling homeowner because it’s hard to know where to go for good information on the Obama mortgage plan.  It’s very important to do some research on any company that you may choose to do business with.  This means checking with the Better Business Bureau, google searching the name of the company to see what you may come up with, and also searching blogs an forums to find out if any other homeowners have had issues with that loan modification company.

It’s also very important to know if you qualify at all.  At Michigan Mortgage Modification we make sure that you qualify before we even suggest you attempt a loan modification.  We do this because the loan modification process is very long and grueling and it makes no sense to waste time on it if there isn’t a high chance at success.

If you decide that you are going to get professional help with your loan modification, make sure to call at least three different companies.  More than likely, you will end up speaking to a salesperson that only makes money if you send in a check.  So, be wary of someone promising you some pie in the sky results and keep the following in mind;

Only 1% of all loan modifications get principal reduction and it is mostly on 2nd mortgages.  So if anyone tells you that you have a great chance at principal reduction and they don’t have a money back guarantee, run away.  Also, consider that a money back guarantee put together by lawyers isn’t always as safe as it sounds.  Another thing to keep in mind is that if you choose an out of state company, it’s kind of hard to hold them accountable.

2% interest rates are available but it comes down to mathematical equations based off of your gross income, your property taxes, your homeowners insurance, and any association fees that you may pay.  So, if any one says you qualify for 2% without gathering this information run away.

Compare the results from the three different companies and choose the one that has given you the most detailed information and makes you feel good about your decision.
Sign up for the free videos offered on my website www.MichiganMortgageModification.com and you will get a FREE,  no obligation, 30 minute telephone consultation in which you will learn if you qualify for the Obama mortgage plan.

Another important issue to point out is that your mortgage does not need to be a Fannie Mae or Freddie Mac loan to qualify for the Obama mortgage plan.  The government offers financial incentive to investors that offer the program so more and more of them are adopting the guidelines.

Unfortunately, the only way to find this out is to contact your loan servicer, and, most of the time, the person you talk to there isn’t a reliable source of information.  They will also tell you that they are there to help and to beware of hiring a third party to help you with this because you can do it on your own.

While it is true, you can do this on your own, whose interest do you think the servicer has in mind?  If you think it’s yours, I’m sorry to pee in your Wheaties.  60% of our clients are homeowners that were either turned down by their servicer for a loan modification or they gave up because they were getting nowhere.

I hope this helps you make an informed decision on how to take advantage of the Obama Mortgage Plan.