Getting assistance from a loan modification company is a sound idea in the case of most homeowners. Working with your lender through one of these companies takes a huge load of responsibility and stress off your shoulders and even increases your chances of a successful negotiation.
Loan modification companies are run by loan modification attorneys and specialists. Besides being trained specifically in modifications, many also have connections with employees in lending offices. This means your chances for approval at least double.
The downside to searching out a loan modification company is that there are hundreds of scam companies across the country, and they’re difficult to spot if you don’t know the warning signs. Often the scam companies seem completely legitimate until it comes time that you should have a completed modification and instead you have an empty wallet.
Scam loan modification companies will almost always charge you an upfront fee for initial consultation, and then continue to tack on fees over a period of time. Usually any other money they ask for besides the upfront “fee” is similarly claimed to help your modification with your lender. Be careful not to believe these lies and if you are dealing with a firm that seems legitimate except they repeatedly ask for money, consider getting in touch with the authorities. The FBI is actively seeking out these companies and is looking to prosecute anyone involved.
Check with the Better Business Bureau before doing business with any loan modification company.
Legitimate companies usually don not charge for the initial consultation, but they do charge for other services. Real companies give you a consultation and tell you the best way to go about your modification, or even if there is no chance you’ll be accepted.
If you are qualified or close to qualified, they will work with you to first fill out your application. Then they will either write the hardship letter for you or assist you in writing a convincing and professional-looking letter. After submitting both of those they serve as a mediator between you and your lender to come to an agreement that both sides can agree on.
Negotiations can take quite a long time, and even after that being approved can take up to eight weeks. However, having a loan modification company handle the paperwork can at least take some of the worry off of your mind. Just be careful which company you entrust your modification with.
