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Loan Modification - DIY or go with a Pro?

Hi everyone,

Ok, I have an investment property, rented out yet costing me money every month, very far under water with BofA, want to keep the place if possible though, and am now faced with the decision: do it myself or go with a pro.

It seems obvious in a way, of course, go with someone who knows what he (in this case) is doing, but I am sure there might be a trade off in there someplace.

A reputable real estate professional has offered to represent me before BofA, for no money upfront or later, said the bank will pay for it. I don't doubt the man's integrity, the question is, what is the catch? almost sounds too good to be true. What are the drawbacks? Is there the possibility that the bank does not like people who are represented by a pro and therefore it lessens my chances of getting that modification? I just feel that there are probably drawbacks and, if so, I would like to know what those are before I make a decision.

A short sale in the event that the loan modification does not work is on the table. Could the person maybe secretly prefer a short sale because it might be more profitable for him? I don't mind people earning a living, but I do want to know whether that is a possibility.

All about pros and cons this is.

I thank you all for your help, and a Happy Thanksgiving to everyone.
  • November 21 2012 - US
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Answers (2)

Best Answer

Profile picture for sunnyview
"A reputable real estate professional has offered to represent me before BofA, for no money upfront or later, said the bank will pay for it. "

Many states have laws that are specific are who can "represent" you in front of the bank for loan modifications. The agent would benefit more directly from a short sale and as far as I know would get no money for negotiating a loan modification at all.

Owners asking for a loan modification do not have to pay anyone. The bank runs the numbers, gives preference to the squeaky wheels who request them and determine if you're are a candidate or not. It is worth calling B of A directly to ask about your options.

I would ask the agent if he has successfully negotiated a mod for anyone else or if the houses have all been short sold. You need more information, but it doesn't sound quite right to me as you describe it. Something is missing in the story.
  • November 22 2012
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The bank will pay for what? If your appication for a loan modification is denied what would this professional benefit?
  • November 21 2012
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