By: Robert Harris
With home values decreasing and adjustable rates going up for millions of people, people are looking at loan modifications or refinancing. In many cases the loan modification process is more cost effective. No appraisal fees, no loan origination fees, no closing fees.
Because of the advantages loan modification has, the previously small loan modification industry has boomed. These loan modification companies target the more than 5 million homeowners behind on their payments. Some of them are legit, but many aren't.
Whether you're behind on your payments, or will be soon because of a decrease in income or an increase in payments, you do have options.
You can try to get the loan modified yourself. There are Government Programs available to lead you through the process. If you're unsure about whether you can navigate the process then an attorney or law firm that deals with real estate and debt reorganization can help as well.
When people ask me if they need an attorney for a loan modification. I tell them no. You don't. And I don't need a plumber to unstop a sink. But if my plumbing issue is not so simple, and I could damage my home if I make a mistake, I hire a plumber because I know they will fix it right, the first time.
If you do decide to hire a loan modification company remember:
1. Only lenders can arrange lower payments. If a modification company guarantees that your loan will be changed, It's a scam.
2. Modification companies might promise to keep you in your home, but they have no control over that. Avoid any company that asks you to transfer the deed of your house.
3. Never agree to make payments to anyone other than your loan company. At the least, middle men slow down the process. At worst, intermediaries might take the money, and never make any payments.
4. Find out if they have any professional malpractice insurance, in case they either make a mistake that costs you your home, or worse, take your money and fail to perform. Oregon lawyers have insurance that will cover you if the lawyer commits and error.
Our attorneys have experience working with, and for banks. We also have experience in debt restructuring. We can help you through a loan modification process and make sure that you receive the maximum benefit available.
Nice Blog. Your tips is very useful to those who have negative pictures of lawyers. Such a good Information on your site. Thanks.
LLC
Posted by: lucas law group | May 19, 2009 at 12:36 AM
Nice tips and very straightforward. I rarely read law blawgs that are not self-centered. Often times, law blogs usually contains post that offer their wares, but yours is different. Anyway, I think the last point (number 4) in the factors to ponder when planning to hire a loan modification company is very important and should be the first thing someone should check. Of course after they've evaluated that they really need one. :)
Posted by: Ace Cash Express | August 24, 2009 at 12:02 PM