Homeowner Finally Able to Breathe Easy After Loan Modification

When Shoreline, Washington native Thai Huynh was looking for a modification company, he didn't know where to start. The media makes such a point of telling homeowners to be wary of guarantees and false promises. With so many scams taking advantage of desperate homeowners, people need to be on guard.

However, Huynh knew he needed help. He readily admits his English is poor and he didn't feel comfortable tackling his mortgage problems with his lender, Citi Mortgage, on his own. Until he started getting constant calls from telemarketers pushing a loan modification, he didn't know what to do.

"I kept getting phone calls from companies telling me they can help me. They tell me they can help me but they wanted me to pay them right away. I was very suspicious because I didn't know these people."

So Huynh did what most would recommend. He did his research.

After he got off the phone with a company, Huynh turned to his computer to see what information he could find on the internet. Not surprisingly, there was an overwhelming amount of information.

"I realized there were a lot of these modification companies taking people's money and not doing anything for them. They had a lot of complaints. Then I got lucky. I called one company and immediately I felt more comfortable. For some reason, I just felt I could trust them. They didn't charge anything until they knew my lender would help me. That made sense to me."

As a jeweler who is feeling the pinch from the slowing economy, Huynh made a strong case for modification. He was falling behind on his payments but he still was making income. He just wasn't making the same amount as when he originally took out his loan three years ago.

Although the modification process was stressful, having to wait on Citi Mortgage to make a decision on his file, the wait was worth it. Just last week, Huynh received approval under President Obama's Home Affordable Modification Program (HAMP). As part of his approval, Huynh's payment was reduced from $2000 per month to $976 per month, including principal, interest, taxes, and insurance. Needless to say, he is happy.

"I cannot even tell you how happy this makes me. I was so worried, so scared I would lose my home. The company kept reassuring me but you still get nervous. I am so relieved."

As part of the HAMP plan, Huynh will make three payments of $976 as part of the trial period plan under HAMP. If he makes those payments on time, he will receive a 5 year fixed loan that will roll into a 30 year fixed loan for the remaining term. These are guidelines established by the government to make sure homeowners who are delinquent can get back on track with a trial period followed by a permanent modification.

Although the process can be frustrating for many homeowners, if they follow the process set up by lenders under the HAMP guide, loan modifications are being approved with some impressive results for homeowners. The key is to make sure homeowners do their research on the numerous loan modification companies ahead of time before deciding on one. One way for homeowners to find out whether a company has a positive reputation is by checking online with the better business bureau to see if the company is accredited with a minimal number of complaints.