I've noticed that there are a lot of articles, pro and con, about loan modifications via 3rd party companies. Since I am in this business, I am always interested in what everyone has to say. But looking at it from a customer's perspective, I can relate to the complaint that there's a lot of ambiguous information out there.
"Loan Modifications are a Scam!" posts a local paper in Brooklyn, NY.
"Loan Modifications- Only with an Attorney!" boasts...well...an attorney.
"Loan Modifications-Government Programs Available!" Boasts every corner shop looking to make a quick buck.
Who can I trust? Well, as with any product, I only trust myself, so let's shed a little light on loan modifications. Here is where I would like to make a point in disclosing that my company does loan modifications, home loans, and credit repair/loan modifications, just so the reader can know my bias to be fair.
I always tell my clients the truth- "YOU can do YOUR OWN modification for FREE or a tiny bank fee!"
"So why use a 3rd party?" they ask.
I always spell out the process from A-Z. Let's compare customer #1 vs. customer #2.
Customer #1 has a #### Bank home loan. He calls #### Bank, and asks, "I am a long time, loyal client of your institution. How can I lower my monthly payment and modify my mortgage? I hear I can do a modification now with the President's new plan."
What you are saying to your bank- "I heard I can lower my rate and I want to take advantage of it. I can afford my current payment, but I do not want to pay for closing costs. Give me a break."
Customer #2, calls XYZ Modification Company. XYZ Modification company sets up an appointment with the customer. Provided XYZ is an HONEST company, XYZ provies a FREE consultation, with up front disclosures. XYZ Company determines, through financial statements, etc. that Customer #2 qualifies for a loan modification. XYZ Company calls #### Bank, (same as Customer #1) and states, "This is Mr. ABC from XYZ Company, and my client would like to modify their loan. My client is going through some financial hardships as per my documents provided to you. How can we proceed to start this process?"
See the difference?? Well this is where the difference lies. But enough self promoting, right? Here are some FREE FAQ about Loan Modifications:
1. Do I need to make a late payment to be approved?
NO! You might have to wait a little longer then someone who has made a late payment, but your loan will get reviewed. Don't ruin your credit where you don't have to!
2. Does a Modification Company need an attorney to complete modifications?
NO! This is a HUGE misconception. Although our company prefers to work with attorneys, for legal reasons, US LAW states that the only State that needs an attorney is California. An attorney might sound official, but if YOU can do it, an attorney or any other credited company can do it.
3. Is it safe to pay upfront fees?
YES+NO. If I see you on the street, will you give me a check for $2,000? But if you see me in my office, check my background, and/or speak to some of my referrals, then YES its ok---
AS LONG AS THERE IS A LEGAL BINDING CONTRACT, AND AS LONG AS THE SERVICE AGREEMENT CLEARLY STATES WHAT IS GUARANTEED, WHAT ISN'T AND WHAT SERVICES ARE PERFORMED.
Well, that's that. I'd love to write away for an hour, but I won't. But I'll be back next week to touch on other points, like credit repair scams, and mortgage fraud.
