A loan modification is when a lender modifies your current mortgage to work with you because of personal economical hardship. If you are facing foreclosure, a loan modification can make your home more affordable. The modification will be some form of a rate reduction and conversion of an adjustable rate mortgage to a fixed loan, usually 30 years fixed.
Today a lot of people are advertising themselves as loan modification specialists. These loan modification imposters have displaced mortgage loan underwriters doing the negotiations. Because of this homeowners should be cautious when choosing a company and only work with a company who has licensed attorneys to do the negotiations.
With the financial downward spiral that has taken hold of the nation, many lenders are busy with homeowners trying to stop foreclosure. With all the people facing foreclosure, they just don’t have the man power or ability to save everyone. Some people just get passed over or lost in the system. You don’t want to end up loosing your home, just because someone doesn’t have time to look at your case.
Homeowners facing foreclosure will not get the same results as someone who has legal representation. When a homeowners fall on desperate times, lender may take advantage them, or their lack of knowledge and negotiating skills may hinder them from finding the help they need. Homeowners can, and usually do, end up settling for much less, rather than finding professional help. A lawyer will make sure that your calls get responded to and letters are answered, which can make the difference between saving your home and losing it. Make sure the company you choose has an in-house attorney who is a leading expert in the field of real estate litigation and negotiations.
A common loan modification scam is to charge a separate fee if you have a second mortgage. Keep in mind that you should never have to pay a separate fee if you have a second mortgage. If they try to charge you one that is a sure sign you are being taken advantage of. It is a very common tactic, so watch out for it and move on to another company.
If you end up using a company that does not use attorneys, one thing to keep in mind is that you should only work with a company that has a 100% money back guarantee. If company is as good as they say they are, they should haven no problem standing behind their word. If they don’t have 100% money back guarantee start looking for a new company, there are plenty out that do. Make sure you get the guarantee in writing as well. But remember, if a company is scamming you, they may offer a guarantee, with no intentions of honoring it. A guarantee is only as good as the company who stands behind it. Make sure you do your research to make sure the company is not a scam.
Finally each loan modification should also come with a Cease and Desist letter to your lender. This prohibits lenders from contacting you personally and to get in touch with your attorney instead. You are paying for them to watch your back and take care of you, so make sure that they are.
There is a lot of negative press going on with false loan modification companies, so it is extremely important that you find a legit company to represent you. They are protecting, something personally dear to you, your home, so use these tip and find the right company to save your home today!