Many lenders can be difficult to work with when trying to negotiate a loan modification. This is why people often consider using a loan modification company or mortgage modification company who specializes in negotiating the terms of their home loans with the lender on behalf of the homeowner. A loan modification company provides advice, resources, and services needed so the new terms are in favor of the borrower. Working with a home loan modification company can help home owners to maintain their property and prevent their credit score from taking any additional hits.
What do I need to know about fees?
Fees generally range from zero for a not-for-profit organization to as much as 2% of the value of your loan. Paying the fee upfront is recommended in the case that the loan amount is not successfully reduced and the fee is charged as a percentage after the fact.
What about fraud?
It is important as a borrower to be aware of fraud. There are many legitimate companies that are knowledgeable and competent; nevertheless, there is a portion of the industry that seeks to exploit clients. To avoid these types of companies, do research and ask lots of questions. Loan modification scammers prey on desperate homeowners and the representative may say just about anything to close the deal.
It is important that your case is handled correctly the first time. Most mortgage lenders will only allow one modification every 12 months. Choosing a valid company to work with can help ensure the modification is handles right the first time.