If you are a struggling homeowner considering doing a loan modification to try to protect yourself against foreclosure, my advice is to step carefully.
I contacted the Georgia Department of Banking & Finance to see what licensing is required of someone offering this service. As of yesterday, in the state of Georgia, you now much be a licensed insured mortgage broker to offer loan modification services. So if a real estate agent or some non-mortgage licensed or non-bonded person approaches you with their services -run!
I suggest a consultation with a real estate attorney or an attorney specializing in this area of loan modifications. Although it can be expensive, your consultation should be free. You can also contact your mortgage servicer yourself and ask for the "loan modification department", explain your situation and see what they say. However, be very careful signing any documents or agreements without someone knowledgeable in the mortgage laws reviewing them. Should you end up having to break your agreement due to greater financial hardship than you anticipated- you could be in even deeper hot water than going the foreclosure/ short-sale route. Ask what would happen should you not be able to fullfill the agreement!
Please review my blog frequently. Things are changing very quickly. Some banks are motivated to help you and some are not although they are getting more pressure to do so from the government. I am expecting the director of the Banking and Finance Department to call me back with more information on the route they are advising struggling homeowners to take to best protect themselves. You can also contact your Consumer Affairs department.
I know it can seem like everyone is out to take advantage of your situation. There are reputable people out there who want to help. Take the time and effort to find those people.
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