Loan Modification Attorneys

Loan modification attorneys & companies – are they a benefit or a rip off? How can you decide if paying a loan modification company is worth the extra money you must pay? Here is some good information about the differences between working directly with your lender or hiring a company to represent you. Beware of loan modification companies: this is a pretty stressful and emotional time for homeowners facing default, thus turning all this over to someone else is tempting. The trade off is that you are paying thousands of dollars to someone you probably know very little about. The fact is that loan modification is a relatively new option, and not many companies have a lot of experience. In addition, many firms are not properly licensed and in compliance with local laws. So, make sure you completely check out anyone you are considering doing business with.

Some borrowers have paid thousands of dollars and then never heard from the company again. Do your homework to avoid being taken advantage of. The news reports are full of stories about homeowners being ripped off by unscrupulous firms just looking for a quick buck. Benefits of hiring a company: that being said, There are some good companies out there who can offer a service to borrowers needing a loan modification. What that service consists of is mainly processing, following up and negotiating for a final loan workout on your behalf. You still have to provide all of your income and banking documentation, and complete the loan modification application forms. The loan modification company wants to speak with your lender on your move to your file behalf through the process, and ideally be able to get better loan workout terms because they know what to ask for. For this service, you are paying anywhere from $2000 to $10,000. some representation attorneys offer loan modification, but since they are actually on retainer, their fees are usually higher.