Loan Modification: Ten Tips From Martin Sumichrast to Help Homeowners Weather the Shark-Filled Waters

CHARLOTTE, N.C. , June 17 /PRNewswire/ -- Martin Sumichrast , author and financial blogger, today released his insider tips on helping homeowners to position themselves for the best chance at a loan modification. Sumichrast recently began working with attorneys and homeowners on a personal level to help them navigate the loan modification process with lenders. As a result, he gained inside knowledge of tips and tricks.

According to Martin Sumichrast, author of The Sumichrast Report , "Faced with an impossible choice of giving up their home or working with near-impossible bank constrictions, homeowners are facing foreclosures, short sales and looking for help with loan modifications. Bottom line, borrowers care about their monthly payment."

First-hand observation of the process has exposed what homeowners need to arm themselves with (for more detailed tip information, please visit Sumichrast's loan modification tips ):

1. Get Help - This is the most important thing a homeowner can do to advocate for themselves. Hire an experienced lawyer (not some fly-by-night loan modification company). 2. Get Organized - Loan modification is about paperwork, if you don't have it, you're not going to get the modification. 3. The Squeaky Wheel Gets the Loan - Communication with your lender is key. If you are falling behind in your payments, don't wait for the bank to contact you. Reach out to them directly. 4. Be Honest with Yourself - Too many homeowners are waiting until they are so far underwater that there is no other way out. 5. Do Your Homework - Part of your job (and this will be a job) is to know the value of your own home to arm yourself with the right knowledge. 6. Get To The "Loss Mitigation Department" - If you are trying to go it alone, get to the "Loss Mitigation Department" of your bank as soon as possible. 7. Have A Darn Good Reason - Make sure you have a darn good reason for needing to modify your loan. Note the use of the word "needing" here. 8. Make it Personal - Your bank will require you to write a "Hardship Letter." What is the bank looking for in a hardship letter? Be personal and direct. 9. Be Patient, Be Nice - Remember it's your loan and not the bank employee's on the other end of the phone.

10. Remember, "The Fox Runs For His Dinner, The Rabbit Runs For His Life" - You, the homeowner, are the rabbit in the process and despite the fact that this is most likely a very stressful time, it's your life on the line.

Tips provided by Martin Sumichrast

Co-author of multiple books in real estate and finance including "The New Complete Guide to Home Buying" and "Opportunities in Financial Careers", Martin contributes to TheStreet.com and has been quoted on major financial outlets such as CNN Money. To read more about his commentary on the real estate market, visit www.sumichrastrep o rt.com.

SOURCE The Sumichrast Report