Loan Modification Companies

With the economy the way it is, many families are struggling to keep their homes. One good way to afford your mortgage payment is to get your loan modified. Loan modification companies are a good way to do this, if you choose the right one.

Loan modifications can save your home but make sure you know who is on your side first. Here is is list of mortgage companies which are in the U.S. You can start the process if you lender is on this list by asking for mortgage assistance. However, It’s always smart to talk to a third party as well to know your options. Many people start by talking to an attorney and having them do all the paperwork.

Why choose a loan modification company? Well, first of all, they won’t get confused with the terminology your bank uses when talking to them. They are on the same page as your lender and know what needs to be done to get you approved. They also know what a good loan modification is and what a bad one is. Lenders aren’t in the business of modifying everyone’s loans right off the bat and when they offer you one, it usually isn’t as good as it can be. A company will know when to reject the offer and when to take it. And finally, you won’t have to spend hours on the phone every day trying to get things accomplished with your lender. The company will handle this for you, because you have better things to do with your time, right?

A loan modification company will know exaxtly what to do to get you approved, if you pick the right one. New laws are being passed that protect homeowners from scandilous loan modification companies. In California, SB94 just passed and now companies are not allowed to take upfront fees. This means that you only pay for success (A lower mortgage payment). That’s a pretty good deal. They know what a good loan modification is, when to take the offer and when to keep negotiating with your lender. They know what expenses show up on your credit report and have to be accounted for on your income and expense sheet. And finally, they charge for this knowledge. You can expect to pay around $2500 right now and if you have a substantial mortgage payment it is worth it. You can make that money back from your monthly savings within a few months in some cases.

Legal Complaints: Loan modification companies have been targeted for investigation by New York State Attorney General Andrew Cuomo in 2009. He has brought suit against 2 firms and subpoenaed 15 others, on accusations of excessive fees, misleading advertising and unkept promises to clients. Cuomo notes that many of the services offered by for-profit loan modification companies are available free of charge from government or non-profit agencies.

Last month, the New York attorney general, Andrew M. Cuomo, said he planned to sue one company, Amerimod, of Uniondale, N.Y., and its owner. He also announced plans to investigate 14 other loan modification companies that his office received about 50 complaints about. The Federal Trade Commission has brought about 11 cases against similar companies in the last year and sent warning letters to 71 more for marketing potentially deceptive relief programs.

The above tips will help you to find the right company to solve your loan woes and also save you from foreclosure.