Besides having the ability to expedite the negotiation process, the main focus of a good loan modification company should be to work with your from the beginning to examine your financial options and how to make this the best possible outcome for your family.
If you feel that a loan modification would be helpful in your situation then here are some of the things you need to look at when talking to a Loan Modification expert:
1. Do they ask for up front fees?
There has been a lot of press about people paying money up front before they know of the possible outcomes. The most recent additions to the Foreclosure Rescue Fraud Prevention Act requires that a foreclosure rescue consultant – a person who tries to arrange a new payment plan with lender or other alternative to foreclosure – provide a written agreement to the consumer and obtain the consumer’s signature before beginning any services.
The legislation further requires the rescue consultant to include in the written agreement a specific notice of the homeowners’ right to cancel, including the procedure for canceling, and a disclosure that the consumer should contact his or her lender first before signing because the lender may be willing to negotiate a payment plan free of charge.
Beware of the company that wants you to send in cash with the promise to make all your troubles disappear. The loan modification company should be asking for information from you before asking for fees. A good modification company will want to know whether they can do anything for you before they discuss the costs.
2. Are they asking about your situation?
A reputable company will want to discuss your situation in order to see if a loan option is a choice for you. This can be done fairly easily with an outline of your expenses, income and outstanding mortgage information. They will not do a modification for you unless there is a high possibility of it working out according to the terms you agreed on.
3. Are they asking for loan documents?
This may sound funny, but if they are asking for money and not asking for documentation then they are not working on a loan modification for you. In order to work on the modification they will need to have certain loan documents sent to them.
Documents such as the HUD-1 settlement statement, Truth-In-Lending and itemization of amount financed disclosures, Initial Application and more. If you need help figuring out what documents you need, the analyst from the modification company or your loan officer should be able to help you find them.
Regardless of your decision, it is important to take action as soon as possible. Sometimes fear or being overwhelmed causes us to freeze in place. Unfortunately, the banks looking to foreclose on your property are not standing still and will move forward unless you or your attorney open up the lines of communication.
It is important to find the right people in your corner that can help navigate this cluttered and confusing Loan Modification process.
Related Articles
- What Is A Loan Modification?
- Do I Qualify For The Obama Making Home Affordable Modification?
- How Much Will My Payment Decrease With A Loan Modification?
- Will A Loan Modification Affect My Credit?
- Getting Approved For A Loan Modification – It’s All In The Packaging
- Required Documents For A Loan Modification
- Writing A Loan Modification Hardship Letter
With No Up-Front Fees, our clients only pay for Results.
Call us today if you have questions about packaging and
submitting a Loan Modification request.
877-496-5393
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