Heres a list of loan modification dos and donts to help you avoid common pitfalls.



Do know your rights.





More than 80% of mortgage contracts violate one or more lending lawsand most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your Loan Modification Attorney can help you understand your rights and use them to get the results you want.



Dont wait too long.



The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesnt mean its safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.



Do work with your lawyer.



Your Home Loan Modification doesnt rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.



Dont file for bankruptcy, unless you really have to.



Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesnt work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anywayso theyre left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but dont make any decisions without getting professional advice.



Do have a backup plan.



Not all people will qualify for a mortgage loan modification. Maybe youve fallen too far behind, your lender may be simply hard to work with, or maybe you dont need it after all. In any case, its always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.

If you cant get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, its not as damaging to your credit as foreclosure, so its easier to get back on your feet.