The current mortgage and foreclosure crisis has been a boon for loan modification companies. This is an area of the economy that is growing exponentially as more and more Americans face foreclosure and financial ruin. This can be good news for many distressed home owners, but finding a reputable one can be tricky. Unfortunately, many of the dishonest folks who contributed to the current crisis will be looking to cash in on this as well.
There are some very simple and straight forward things to look for when researching loan modification companies to that you are not the victim of a fraudulent or less than honest company. By taking care to research loan modification companies before you begin the process you increase your chances of getting a good loan modification that will keep you in your home and financially solvent.
The best place to start is your own bank or mortgage company. If you are happy with them and feel that they have your best interest at heart you can simply apply for a loan modification process through them. Most major mortgage companies have loan modification departments for their borrowers. This is what will be keeping them in business. You may not have to look further than your current lender.
If this isn’t the case and you need to find another company, you should first start by asking people you know about their experiences with other lenders and/or loan modification companies. People you trust will give you their honest feelings about their experiences. You can also research other well known banks and mortgage companies. Although these companies may have lengthy application requirements, in general they have solid practices that will help you to get a good loan. Look for companies that have good reviews and a good reputation.
Be wary of any company that guarantees any part or your loan modification. There are no guarantees in this process. The modifications made come from your unique circumstances and until the process has begun, no lender can honestly promise you anything. If you feel you are being sold a bill of goods, you probably are and should proceed with caution. A reputable company will be honest with you from the get go.
Do not pay any upfront fees for a loan modification. If a company wants an upfront payment or retainer fee just say no. With the federal loan modification programs currently in place, and many states mandating lenders to offer loan modifications to their clients, there is no need for upfront fees. This is a clear sign of someone looking to profit from your misfortune.
Finally, be sure that a loan modification company actually understands the process and has credibility. Many former bankers, investors and financial industry workers are starting up loan modification companies. It is one area that is actually seeing growth at the present time. This means that many unqualified people will be hanging out their shingles and start looking for potential customers. Being someone’s guinea pig is probably not what you want for yourself given the potential outcomes of such a choice.