How to choose an Honest Loan Modification/ Loss Mitigation Company

There are almost 10,000 foreclosures 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.

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.

Things to look for when choosing a Legitimate Loan Modification Company:

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.

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 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, reduce the principle balance, 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 BBB (better business bureau) is a great place to start. This will tell you if they are registered at all, if there's any complaints, and if they have been in business over a year. (You will find many Loan Modification companies have not been in a business a year, you need experts to help you during this crisis)http://www.bbb.org/

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:

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.

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?

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 presense. If they do have attorneys, you should receive this in writing when reviewing your enrollment package.

The fee should be affordable and competitive: Some companies will charge fees anywhere from $3500- $10,000. This is price gouging. The fee should be based on your mortgage payment (excluding late fees and penalties) to ensure it is fair. 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.

Seem too good to be true? If you are being promised an interest rate, or and exact prinicple 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.

Is there an approval process? Before you agree to paying any fee at all, there should be an application process which would determine if you qualify for this assistance. This should not include credit qualifying. Credit is not a determining factor. The application should include, your budget, income, property info, and hardship. This information will determine if you qualify.
Is there any kind of guarantee? This is very important. If the company you choose, can not come to a resolution for you, then you should be entitled to getting at least most if not all your money back. No Excuses!

I have been in the real estate industry for 20 years and have built my company to offer Free Foreclosure Prevention information. We have interviewed numerous Attorneys to find the best of the best and have made arrangements with licensed Attorneys to legally mitigate and negotiate with lenders for the best possible loan modification. We have built our company based on honesty and ethics. Our clients are our #1 priority, and we have nothing to hide or cherry coat. 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.
(800)765-3150 x5000