If you are considering a loan modification in Escondido, in California and beyond, be careful! You probably wonder what I am talking about and why I would advise you to proceed with care. The main reason that I advise caution is that at least two times a week for the past year, I have encountered a borrower who has or is planning to pay someone else to help modify his loan. Of each of these borrowers, one out of every two either loses their home in foreclosure or returns for additional help after their loan modification didn't work out as they had hoped. Many times they also lose the money that they paid.
First off, if you are going to hire someone to help you modify your loan, ask questions.
- Who will be doing the modification? Is this individual a licensed real estate agent, a foreclosure consultant, an attorney? (Obtain the license number.)
- Understand the rules for loan modifications in your state. In the state of California, for example, there are certain rules with regard to bonding and registration with the Attorney General of the state.
- Obtain references. Ask for the names and phone numbers of five past clients. Call those individuals to get more information about the services prior to signing on the dotted line.
- Go to the office of the individual who you are planning to hire. Many times those who participate in fraudulent loan modification will knock on your door or phone you to solicit their business. Ask to meet this individual that you are planning to hire in his or her office. This way you may be able to get a better idea as to whether this is a legitimate business.
- Call the District Attorney in your county. Ask whether they have any complaints against the individual you are planning to hire.
Understand that a loan modification is not appropriate for every borrower. If you have lost your job and are currently unemployed, it is highly unlikely that you will qualify to participate in a loan modification. Also, know that you could just as easily pick up the phone one time per week and call your lender, submit the documentation, and do your own loan modification.
Last week an unemployed borrower whose short sale file has been in our office for quite some time and whose short sale is fully approved and ready to close on Wednesday was approached by a woman who signs up individuals for loan modification for an attorney. This borrower is desperate to keep his home and has decided to attempt the loan modification. While, I sincerely hope that this works out for the borrower, I am not optimistic. The property is planned to go to foreclosure on Friday and the borrower is unemployed.
There are lots of folks who are facing tough times. If you are one of those individuals, it is natural to hold out hope that you will be able to keep your home. But, you do need to be realistic. A loan modification is not going to work for everyone. Be careful who you speak to and where you seek your advice. There are many, many legitimate sources out there that could advise you on whether a loan modification is right for you. But, there are others that want to make a few bucks and pay their own mortgages.
Good Luck!
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