Loan Modification Companies. Home Wreckers Or Heroes??
Loan Modification Companies. Home Wreckers Or Heroes??
Since the decline of home prices and largest increase in foreclosures in history there have been numerous companies that popping up to help you get a loan modification. If you read anything on the internet before foolishly giving your money to someone you will understand how important it is to do your research. You will see horror story after horror story about people giving there money to someone who either never contacted their lender or went out of business, but does that mean everyone is bad?
Take used cars for instance. There are tons of horror stories about people buying used cars that ended up being lemons, or were in accidents that weren’t disclosed. That didn’t stop people from buying used cars, but forced consumers to be rely on services like Carfax to help protect your investment. It’s always smart to do your homework and there are known resources that will help you. Here are a few do’s and don’ts that you should follow.
Do
1) Rely on services like the Better Business Bureau- If someone is not a member of the BBB or have a poor grade run! Don’t fall for excuses about why their grades are poor or that their bad grade is due to the volume of people they work with. Look for someone thats accredited and has at least a B rating….IF NOT RUN!
2) Make sure they take the time to qualify you- Not everyone qualifies for a loan modification. They should spend time going over your financial situation and hardship (reason for needing modification) before they tell you they believe they can help. If they are only concerned about getting your money and not understanding your situation….RUN!
3) Don’t fall for gauranteed results- Loan modification is a voluntary negotiation with your lender. No company or person can guarantee what your lender will offer. Good companies can point out problems in your application and give their best efforts to follow up and follow through, but even the best can’t guarantee results…IF THEY DO,RUN!
4) Don’t work with companies with names similar to government agencies- Many scam companies have names similar to “Hope Now” which is a non profit government agency that helps struggling homeowners. If a company is decpetive about their name than who knows what else they are not telling you.
Don’t
1) Don’t rely on the information on their website about their credentials - It’s 2009, anyone can put a website up and make it look official and of course they think they are great. Rely on third party sources like The Better Business Bureau or Consumer Affairs.
2) Don’t work with a company that doesn’t offer a refund policy if they don’t get results- If they get you a modification and save your home from foreclosure or get you into better terms than they’ve earned their fee, but some companies keep all of your money even if your lender is unwilling to do anything. If they offer a refund make sure it’s in writing. Don’t take someone’s word when it comes to your money.
I hope this article stops people from in a bad position from making bad decisions. Do your homework and talk to your lender first. If you don’t get anywhere and the lines are too long at the non profit organizations that offer assistance, do your homework and if you see reg flags…RUN!
Dodd and Geithner should resign
Category: Mortgage application
