"Don't pay $1500-$3000 to a loan modification company and receive virtually nothing in return." Make sure you follow these tips to avoid falling prey to shady companies.
If you are currently facing foreclosure I am sure you have wished you could hire someone to make all your problems go away, be very careful of anyone making such a claim. It is difficult for homeowners faced with losing their home, with desperation setting in too many homeowners have fallen victim to unscrupulous loan modification agents. Here is some essential information you must know.
Some Loan Modification Companies are Scams!
Due to the stressful nature of being behind on a mortgage people have taken the opportunity to capitalize on this and make promises they do not intend to keep in exchange for money. Lawyers, some real estate professionals and a few loan modification companies are the right choice for some people and thorough research and reference checks are a must before signing any contract. The fact that loan modifications are a relatively new and effective technique to stop foreclosures means many un licensed and uneducated people are charging $1500-$3000 for questionable services.
Signs of a Good Loan Modification Company
References, References, References! To be sure you are getting a reputable business ensure you check with many references to determine the level of service they provided. Never sign a contract with anyone that requires an upfront payment with no guarantee. Since the agent you are hiring will be communicating with your lender it is important that you are impressed with their communication skills, some signs of this are timely responses to email, phone or fax messages.
Foreclosure Attorneys
When you have a very unique situation expensive attorneys may be a good option. For example, if you have been the victim of predatory lending then an attorney may be worth the additional cost.
Guidelines to Avoid Loan Modification Scams
1. If you feel the company is using pressure to force you to sign a legal document, don't sign anything and choose another company or option.
2. Ask as many questions as you can until you fell 100% comfortable with the company
3. Don't use up-front payment companies
4. Choose a provider that offers a guarantee
5. Get any guarantee in writing
6. Only send mortgage payments to your lender, not a 3rd party
7. Use common sense and if a company's promises sound too good to be true, they are!
President Barack Obama's Homeowner Affordability and Stability Plan has provided $75 billion in incentives for lenders work with homeowners to modify their monthly mortgage payments. This is a great opportunity for people considering a loan modification.
There have been many home owners who have successfully worked with their lender to modify their loan on their own saving $1500-$3000. The truth is that most loan modification companies and lawyers simply fill in forms and follow standard practices. If you were armed with effective instructions, all necessary forms, lender contact information, document templates, checklists to ensure everything was done correctly and the motivation to save your home from foreclosure your chances of success are good. Regardless of which option you choose, the sooner you act the better your chances are for success.
This Loan Modification Guide will provide you with everything you need to complete your application including all forms, detailed instructions, templates and checklists.
To learn more about the home mortgage loan modification process, please visit http://www.foreclosuresmedic.com
Article Source: http://EzineArticles.com/?expert=Jonathan_Gillhamhttp://EzineArticles.com/?Loan-Modification-Scams---What-You-Must-Know&id=2049235
About the Author
Frank is a loan modification specialist who has helped in the creation of a complete loan modification kit which is available at http://www.foreclosuresmedic.com
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