loan-modification
The first thing that you need to decide when you are looking for a loan modification program is whether or not you are going to do it yourself or hire a professional. You will most likely only get one opportunity to try this. Make sure that you take the right steps.
The loan modification boom has given rise to many a predator. “Loan Modification” companies have sprung up quicker than flowers in the spring. Many of these companies are nothing more than recycled mortgage bankers and brokers who have re-tooled their businesses to capitalize on the hardships of the folks they put into these loans. It does not mean that this type of company will not do a good job for you. My opinion is that there are many charlatans who move through markets at any given time to take advantage of consumers in “boom times”. It was seen in the stock market during the “Tech Boom”, then in the mortgage market during the “Refi Boom” and “The Housing Boom”, and now these same recycled slick haired super sales people are taking advantage of the “Loan Modification Boom”. An uneducated desperate consumer may be easy prey, and no match for this type of predator.
Many of these companies take a large upfront fee to work on your loan modification and never do much more than taking your money and send a few pages to your lenders. The effort expended is minimal and the results are lackluster at best. It reminds us of the phrase “Caveat Emptor” (Let the Buyer Beware) is certainly applicable in this situation.
Be very wary of anyone who advertises, or tells you that they have special contacts inside the banks. Ask them which banks, if their answer is vague, they are probably lying. If they can’t be specific about such a bold claim, you don’t need to do business with such companies.
When shopping for a loan modification company, it is mandatory that you do your own homework. Research is paramount in picking the right company.
• Check the Better Business Bureau, consumer affairs, etc
• Check other businesses of the loan modification company
• How long have they been in this business and how long have they been doing the loan modification process?
• Ask for references of satisfied clients.
• Ask the loan modification company if they do a complete financial analysis? Do they do a property valuation? Do they work on more than one solution with your lender? And what happens if they can’t get the results?
• Discuss about the fees and the refund policies.
• What is their version of a successful negotiation result?
Visit this link for more info of loan modification: http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm
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