How to choose an Honest Loan Modification Company
There are over 250,000 foreclosure filings — default notices, auction sale notices and bank repossessions combined, occuring each and every month. Unfortunately, there are many people that don't know there is help out there for them. Most people will contact their lender, and find they are only being offered a FOREBEARANCE PLAN. Which in most cases, this does not benefit the homeowner.
Maybe you are being put off, or they tell you paperwork is missing, or you missed a deadline. This is how "put off" tactics are implemented.
However, the lenders do not have enough man power to handle all of the requests to modify loans, so they look for a quick fix.
Please be aware that your lender does not want to foreclosure your home! The more foreclosures they endure, the closer they come to shutting their doors.
The homeowners usually stop looking for help after speaking with their lender and believe there is nothing left to do, except lose their home. THIS IS NOT TRUE!
If you do happen to come across this blog, hopefully by the time your done reading you will feel more informed about this process.
How to Choose an Honest Loan Modificaion Company? Or maybe the question is How not to....
There seems to be hundreds of choices when searching for the "right" Loan Modification or Loss Mitigation Company. The thing you need to be aware of, a lot of them are not legit and will not deliver the type of outcome you expect or any at all. Because of this factor and many others, I advise you to obtain a licensed Attorney or Law Firm.
Starting a few years back, there was a lot of "bad loans" being made, and predatory lending. This is the #1 reason why so many are struggling with their payments, aside from the bad ecomony and other types of hardships.
I am here to tell you BEWARE! Many Loan Modification companies are just trying to get a piece of the "foreclosure pie" and are "scamming" homeowners in distress to feed their own bank account.
On the other hand there are a few good companies to choose from who really care about your situation and have "real" legal help which includes Attorneys to mitigate (stop foreclosure) and negotiate with your lender to modify the loan. Modifying your loan means to change the terms of your existing loan. For example: Lower and fix the interest rate, move past due payments to end of loan, and sometimes freeze payments for a while depending on your hardship. All of the above, will result in a lower affordable payment which is what everyone is looking for.
INVESTIGATE:
Check credentials:
- The Bar Association
- Check with the Federal Trade Commission- This can tell you if any laws have been broken, or the company has been investigated for any reason.http://www.ftc.gov/ftc/business.shtm
- Don't forget the Consumer Protection Agency- Great resource for Scams, Complaints, and licensing information.http://consumeraction.gov/state.shtml
- Rip Off Report is great also. This is not an official place, but is becoming very popular to consumers who have been ripped off or scammed.
Please note: While seaching for the company's credentials, make sure the address, and owner names match up to what you are looking for. You have to remember there are a lot of companies from different states that have the same name but are not affiliated.
Now, aside from credentials, there are other things to look for:
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Are you being asked the right questions? For Example: How much you owe? What is the value of your home? What is your interest rate? When did you purchase your home? What is your hardship? Have you contacted your lender?
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Does this company "care" about your situation or does it sound like they are more concerned about collecting a fee. Do they listen to you? Provide you with guidance and support? Are they passionate about what they are doing? Are they reading a script? Are they informative? Are they hesitate on providing you with answers?
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Do they have Licensed Attorneys to mitigate your home, and negotiate with your lenders. Attorneys
get top priority and the best loan mods done because of their expertise and their intimidating presence. If they do have Attorneys, you should receive this in writing when reviewing your enrollment package. If you are told you are retaining an Attorney, you should issued a Retainer Agreement.
- Charges fees anywhere from $4000- $10,000. This is price gouging. If the mortgage payment is extremely high, the fee should be able to be negotiated. Everyone's situation is different and this should be considered when charging a fee. Their #1 priority should be to work with you to keep you in your home.
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Seem to good to be true? If you are being promised an interest rate, or and exact principle reduction amount, most likely you are just being told what you want to hear. Please note that no one can promise you anything without negotiating with your lender.
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Is there an approval process? Before you agree to paying any fee at all, make sure your entire file has been reviewed by your Attorney and deemed eligible.
- Is there some type of money back guarantee? This is very important. If the company you choose, can not provide you with a loan modification, then you should be entitled to getting most your money back. No Excuses!
So maybe the questions is not "How to Choose an Honest Loan Modification Company". Maybe it should be How to locate an honest Attorney. We all know honest Attorneys are sometimes are hard to come by as well.
I have complied a handful of Attorneys and Law Firms who:
1. Are in good standing with the Bar Association
2. Are actual licensed attorneys who will be representing you and negotiating for you.
3. Have proof of success
4. Have passed my legitimacy test (scam free, and researched thoroughly through reliable resources.)
5. Have reasonable fees
6. Have the clients best interest in mind
7. Are structured and organized
8. Are in compliance with federal regulations and guidelines
9. Are helping homeowners in the State you reside in
As you can see this takes a lot of footwork and many hours to develop. Each Attorney or Law Firm is unique in their own way and offer different services and have variable fees.
What I will do is discuss with you one on one about your unique situation. I will then determine your eligibility, and will decide which one of these legit Attorney's will suit your specific needs. Once you are on board with a specific law firm, (which I will help you with) you and I will stay in contact throughout the process if you wish. I do not charge a fee to provide this information to you. I am so fed up with all of the scams, I feel it is my personal duty to stand up for the public and provide this service.
I conduct myself based on honesty and ethics. My clients are my #1 priority, and I have nothing to hide nor do I cherry coat your chances. You will get nothing but the truth, and all the information you need to make a decision.
If you would like to see if you qualify for a loan modification feel free to contact me. I would like to provide legit, honest help to as many people as possible.
C Thompson
407-219-8739
cthompson@keepyourproperty.info
Other Helpful Links:
How to Avoid Loan Modification / Loss Mitigation Scams
Loan Mitigation Services FAQ's
Why won't my lender won't work with me?
Pre-Approval Loan Modification Application
If you find this information usefull please leave a comment.
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