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Originally Posted by georges50
One of the first places you should look at is a web site maintained by the federal government: Making Home Affordable, it describes resources that are available to help homeowner borrowers and eligibility requirements.
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The most important thing any homeowner can do to modify their loan, is to contact their lender. Most banks and mortgage companies are now on board with the Making Home Affordable Program (HAMP), and will require information from the Homeowner to pursue a modification. It has been well advertised that Loan modification companies are illegal in the State of North Carolina, so do not fall prey to a scam that requires you to pay money up front in order to have your loan modified, there will be no charge if you work with your lender. The main obstacle in this process, is whether or not the investor holding your loan will agree to a modification, as most banks have sold the mortgage and are merely servicers of the loan, and modifications are being offered on a trial basis. This unfortunately may or will not lower the principal of the loan, which is the main culprit as many homeowners are upside down on their mortgages. Once banks start lowering the principle, then homeowners may start to see the equity return to their investment. This very issue has just been addressed in the Wilmington Star News and the New York Times.