They send homeowners a "letter" stating that the homeowner might qualify for super low rates, and they have to come into the bank alone(with no representation)
The lender takes full advantage to write the loan mod in the banks favor. You, the homeowner, clearly have had a much better expert negotiated loan mod. But fear and procrastination keeps them away from expert help.
Since 2009 banks are setting up the Obama's home affordable program which offers a government guideline that protects the homeowners interest. And you could get a negotiation according to the government guidelines. And better results than before.
Fifteen million homeowners have stopped making their house payment. But the lender doest want to believe it. They think that the homeowner is going to find some new way to get money. They are wrong, deadly wrong.
However, when you decide to keep your home and stay in your home. Loan modification is one of the best options for You.
Beware of people who offer these:
1. Collecting upfront fees to help you
This is the way to make them money and help them stay in business. A modification fee of $3,000 is small when a professional loan modification company can save you i.e. $200,000 on the life of your loan, and/or cut your house payment in half.
Remember, the lender charged you 1%-3% (points) on your loan and the realtor took 6% of the sale price; but they say that was ok!
Hiring a loan modification company is like hiring a 'CPA' to do your taxes to get you the best results. Find the best attorney loan modification company that has the expert experience with your lender to get the best results for your family. How logical is that?
2. Asking to be paid by wire or cashiers check
No wire payment but, a cashiers check for a 1/3 or 1/2 down payment to start the job is possible. Your should be dealing only with a attorney loan modification company with a verifiable business address.
Attorney loan mod companies usually give a free initial review of your case and then upon accepting your case will collect a retainer. Attorney mod companies DO NOT HAVE TO BE REGISTERED WITH THE DEPT. of REAL ESTATE. They are policed by the state bar. When considering a attorney mod company always ask for and check their state bar number.
3. Guarantees to stop foreclosure.
No one can guarantee this as the bank has the last call. Only an attorney loan modification company can put the kind of pressure on the lender to get the homeowner good results. Any top notch attorney loan mod company should be showing you what results they are getting with the lender at this time.
The lender does not want the homeowner to have any advantage in a loan modification.
A good loan mod company works with these lenders every day and knows what it takes to get the results and will get a better result than the homeowner could get.
For a loan modification, you should hire the best lawyer based loan modification company you can find.
The company should have:
1- A verifiable business address. A walk-in office.
2- Good past results history
3- Past customer contacts & testimonials
4- Good results with your particular lender
5- A work contract and refund policy
6- Realistic projections
Now, you have in your hands the option to do it yourself the hard way or to work with a loan mod company. The clock is ticking on your mortgage loan.
What you do? The answer is loan modification.