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Loan Modification advise

I currently own more then my house is worth. I owe around 250,000 and the house is worth 220,000. I was considering applying for a load modification. Who is best to contact about this and what is the result to my credit report? Will this effect any future purchases once i am able to get out of my first home?
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January 12 2010 - Renton
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Answers (4)

First see if you can refi thru your current lender or contact a mortgage person to see if you qualify for a government program.  Secondly, if you try a loan mod and are put into a trial mod, your credit is usually impacted...see this article for a full description...http://www.callalms.com/blog/2009/more-to-know-about-trial-loan-modifications/

If you want to talk further, I will be glad to talk talk to you about it if the article doesn't provide enough detail. 
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January 12 2010
The best person to contact first would be your current mortgage provider.  This is the cheapest way to go.  There are also third party companies that will contact your lender for you, BUT they will charge you for their time.  Usually loan modifications done with the assistance of third party companies will costs you about the same as a refinance.

Another option to go would be a refinance.  You currently owe around 113% of your house value.  If you lender offers the 125% "Making Home Affordable" product, they will most likely try that first. 
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January 12 2010
correction
2) your credit will NOT  be affected if you continue to make the payments on time
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January 12 2010
1) contact the present lender

2) your credit will be affected if you continue to make the payments on time
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January 12 2010
 
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