Loan Modification Broker

Loam modification involves some serious negotiation with your mortgage lender.The first choice you need to make is whether to use the services of an experienced loan modification broker, or whether you feel you can undertake this process yourself.There are pros and cons with each approach, and the right answer for you will depend at least in part on your own situation.

The aim of a loan modification broker is to assist homeowners to retain their homes, and to avoid delinquency and foreclosure. To accomplish this, a successful loan modification broker must contact people whose homes are in danger of going into, or are already in, foreclosure. A loan modification broker must then convince homeowners that he can effectively negotiate a loan modification on their behalf because he: (1) has a good track record; (2) has insider information about and contacts with lenders; (3) has extensive knowledge of housing, mortgage and foreclosure markets; (4) has had appropriate education; and, (5) has professional credentials/licensure.

Loan modification brokers can be independent agents, or employees of attorneys or loan modification companies. The most effective loan modification brokers are former mortgage, banking, lending and real estate professionals or attorneys. But because no licensing or training is necessary, brokers may simply be ordinary people who are willing, for a large fee, to negotiate for the homeowner while having no more skill than the homeowner himself. Some of these agents have been characterized as predatory and accused of extravagant claims, excessive fees and of victimizing terrified homeowners.