Homeowners beware! What you need to know before choosing a Loan Modification Company

A loan modification is when the lender modifies your current mortgage in order to work with you because of a hardship. The purpose is to help make your loan more affordable. Usually it is in the form of a rate reduction and conversion of an adjustable rate mortgage (ARM) to a fixed loan, typically a 30 year fixed.

These days, it seems like everyone is purporting themselves to be a Loan Modification Specialist. Borrowers should be wary of such loan modification "mills" and should only work with a company who has licensed attorneys who actually do the negotiations. Most of these so-called loan modification companies have displaced mortgage loan underwriters doing the negotiations.

Lenders and servicers are very busy with desperate homeowners trying to save their homes from foreclosure. Unfortunately, they do not have the man power or the capabilities to save everyone. Many people are simply getting lost in the system and suffering an unnecessary foreclosure when they could have worked it out with their lender.

As you may have already experienced, lenders can take advantage of a homeowner's lack of knowledge and negotiating prowess. In fact, most homeowners never even reach the real decision-makers. Homeowners oftentimes wind up settling for much less, than they could have without professional help. I can assure you that without legal representation, you will not get the same results! When a lawyer is involved, it seems as if the calls start to get answered and the letters responded to. Often this can make the difference between saving your home and losing your home. There should be no doubt that you will achieve far better results than going it on your own.

A forensic loan doc audit should be included with every loan modification. Moreover, you should not have to pay a separate fee for a loan doc audit. A lot of companies will have you pay anywhere from $895-$1,500 just for the loan doc audit itself; then subsequently charge you $2,800 or more for the loan modification.

A loan doc audit should include the following: a. Review file for efficacy b. Review file for RESPA (Real Estate Settlement Procedures Act) violations c. Review file for TIL (Truth-In-Lending) violations d. Review file for Fraud e. Review file for Predatory Lending violations

A loan doc audit is critical because the more violations that are discovered - the more leverage you have when negotiating with your lender.

Another common loan modification company scam is to charge a separate fee if you have a 2nd mortgage. You should never have to pay a separate fee if you have 2nd mortgage. Be wary of any company that tries to charge you to negotiate with your 2nd lender. This is a very common tactic.

You should only work with a company that has a true 100% money back guarantee. If the loan modification company you are working with does not offer you a 100% money back guarantee - run and don't look back. If the company is really as good as they say they are, they should back it up - in writing.

Each loan modification should also come with a Cease and Desist letter to your lender. The Cease and Desist letter prohibits lenders from contacting you directly and instructs the lender to contact your attorney instead, thus relieving unneeded stress during this difficult time.

With all of the bad press going around concerning loan modification companies it is imperative that you do your due diligence when protecting your most precious asset and possession - your home. So, be sure to ask a lot of questions.

We have an experienced team of loss mitigation servicing center personnel that put your case together with expertise and precision. We understand how to package your case file the way the lender expects to see it, saving valuable time and achieving near perfect results. Our streamlined procedures reduce the process time, helping you end the stress of waiting for a final resolution. We have in-house attorneys who are leading experts in the field of real estate litigation and negotiations. Our legal support staff are the best in the field and come from all over the nation.