Loan Modification Laws

These laws have been put into effect because there have been many loan modification scams and frauds in today’s market. Homeowners who are facing desperate circumstances with not way out often trust any agency that offers them hope. These fraudulent companies charge an upfront fee that can be into the thousands of dollars. This fee is not necessary to begin negotiations on the borrower’s behalf, but is simply a fabricated fee charged to rip off desperate people.

Lenders have guidelines, not laws, but it is still important you know them. You must fit these guidelines exactly if you want to get your modifications approved. Usually these guidelines revolve around these factors:

Lending institutions are very strict about these guidelines. Before doing anything, it is in the homeowner’s best interest to do some research to find out the exact expectations. If you don’t do this, all the time you spend doing paperwork and filling in applications will be wasted.

State loan modification laws generally outline who is able to handle modifications such as mortgage brokers and attorneys. It is not easy to find these laws, but it important you know them because they will determine your success. You need to use the right sources, like your state’s Real Estate Commission. If you know these laws up front, you can save time and money and possibly save your home.

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.