Loan Modification Business

A loan modification is the most preferable solution to financial hardship for homeowners looking for mortgage relief, and as such has been the focus of a large amount of media attention in lieu of the onset of the financial crisis.

In this article, I am going to provide you with some information regarding the types of new laws we are seeing that affect our industry. To those of us in the loan modification business, advance fees are important as as the collection of these fees help us guarantee that we will be paid for the services we are providing.

Is there such a thing as a “loan modification boom”? Well, I think there is. When lenders agree to modify hurting borrowers into a new loan, often the lender will offer the borrower a 30 year fixed rate loan at current market rates (regardless of the borrower’s credit scores, etc.). So when current interest rates go down, the modified 30 year rate offered will also go down.

Before we get there, let’s talk about a worse case scenario.  In order to do loan modifications in certain states, there are a few different types of laws and requirements that could be applicable to your business:

In any case, make sure that you give as precise and verifiable information to your loan modification attorney so loan modification servicers discuss with the lenders to get the best possible rate for the loan.