Choose your loan modification company carefully
Nine Things to Consider Before You Choose a Loan Modification Company
It does not take long for opportunistic people to cash in on any given situation. The present is a great opportunity for such scam artists to swindle people who are looking for loan modifications. Most of us are looking at modifying our loans thanks to the high loan rates, looming foreclosures and mortgage loans which value more than our property.
Most of the recently founded loan modification firms are boiler room operations with genuine firms far between. So how do you determine which of these are genuine and which are out to grab your money.
Look for the answers to the following nine questions you will be able to separate the wheat from the chaff.
1. What kind of an organization are they? Are you dealing with a law firm, an independent processing firm or a broker?
Brokers and other independent companies are not bound by legal and ethical rules that bound a law firm. A thorough background check is recommended before you decide to part with your money.
2. How old is the firm in the modification business? Does it provide other services as well?
Make it appoint to deal with a law firm which has been in the modification business for the last 10 years, at least. You need someone with exhaustive experience with real estate law. No one but an attorney can represent a home owner who has been issued a Notice of Default?
3. Is the firm bonded or licensed?
Do not interact with a firm without a license or which is not bonded to the state.
4. Is the firm giving you a written contract?
You need a written contract which clearly states what actions the firm plans to take on your behalf. A complete written disclosure is essential before any action takes place.
5. Does the company have approval from the Dept. of Real Estate, to collect loan modification fees?
You should never deal with a company which is not certified to collect loan modification fees upfront.
6. Is the company directly involved in negotiation with the lender or are they out sourcing it?
A company which is outsourcing negotiation has no real control over the proceedings. You do not need to deal with the likes of such.
7. How thorough are they in evaluating your situation?
A knowledgeable and experienced attorney from the firm should have spent quality time with you reviewing your specific conditions and objectives. A genuine firm will not take up your case if it does not meet the specifications required.
8. Does the firm offer you a guarantee?
This is the one thing which should scare you off completely. No firm can guarantee how a lender will react to your case.
9. Does the company keep you updated once the process of modification starts?
Your contract should specifically deal with this. A contact person who will be responsible for answering your queries should be marked out.
Ask all the right questions. Nothing can replace your prudence and research before you decide to pay for the services which can have a profound effect on your home proprietorship.
