Millions of financially troubled homeowners struggle to meet their mortgage payments each month. Many borrowers face the possibility that their house will be foreclosed on and they will lose everything they have worked so hard for. One alternative to foreclosure is a loan modification. With a loan modification, the terms of the loan are altered to make the monthly payments more affordable for struggling homeowners. It is possible to deal with your lender directly to request a loan modification. Many people do this quite successfully. Others prefer to hire a loan modification service to assist them.
If you are considering hiring a loan modification service, there are several important things you need to do to ensure you find a qualified company to help you with your loan modification. New loan modification services and companies are sprouting up everywhere. Some are qualified to help you and some are not. Here are some tips to help you evaluate loan modification services so that you can find the right service for you.
Tip #1 Make sure that the loan modification service is in compliance with all state and local licensing requirements.
Some states require a loan modification company to be licensed with the Department of Real Estate. You need to check with your state's licensing board to find out what the licensing requirements are.
Tip #2 Verify the loan company's physical address
Tip #3 Verify that the loan company has the appropriate local business license.
You can usually check this with your county clerk's office.
Tip #4 Contact your local Better Business Bureau to find out if any complaints have been filed against the loan modification company.
Tip #5 If the loan modification company attempts to collect an upfront fee from you, check to see if there are any regulations regarding this issue.
Some states like California and Florida do regulate upfront fees.
Tip #6 Find out how long the loan modification company has been in business and what experience they have in dealing with loan modifications.
Tip #7 Ask for references
Ask the loan modification company for references from past clients. If references are available, follow up and contact the clients and verify that they were satisfied with the work the loan modification service did on their behalf.
If you decide to hire a loan modification service, be sure you follow these 7 tips. Do your due diligence on any loan modification service you are considering to help you. Your efforts will pay off if you find a qualified loan modification service to help you ensure that your loan modification request is approved.