How Much Will a Loan Modification Cost?

There is always more than one way to do anything but, with some things, you really do get what you pay for.

How much the loan mod will cost depends on who's doing it. The homeowner can do their own negotiations with their lender for free. There are government agencies that will help the homeowner do a loan mod, again for free. There are also Investors and Realtors willing to do it for a nominal fee and the chance for a short sale opportunity if it doesn't work out. There are also some experts in the mortgage industry that have added loan modifications to their repertoire when a re-fi just won't work. Their fees will vary, but on average expect from $500 to one month's piti, it shouldn't be any more than that, they may be experienced but they are not certified.

Attorneys are going to charge you more, expect anywhere from $2500-$6000 depending on whether the 2nd mortgage is also done.


Regardless of who the homeowner hires, there should be no pre-qualifying fees and there should be a 100% money back guarantee if the lender(s) declines the homeowners' file. There are other more subtle differences that relate to expediency. Some people appreciate the quick qualifying offered online over the full document submission required by most before ascertaining whether or not the homeowner is even a good candidate for a loan mod.


If there is a 1st and 2nd mortgage on the property, for the maximum benefit, it is usually better to combine them in order to reduce the monthly payment instead of just doing one or the other. Many will charge extra to do the second loan; obviously, you can save more by having them both done at the same time for one fixed rate.


Regardless of who winds up with the job, the cost of poor credit, or foreclosure hanging over you for the next seven years is incalculable in terms of how long it will take to recover from it. Add to that your moving expenses such as renting the truck, paying for storage, coming up with security deposits, transferring to new schools, downsizing, or moving in with relatives.


Figure out what it's worth to you and make that call or submit a fast response form and you will be contacted.