A loan modification is a change in the terms of a loan, usually the interest rate, payment or term; making the payment more affordable for you. There are steps you need to take before applying for a loan modification seeking Loan Modification Help.
The goal of a loan modification is to make it easier. Many bank lenders will be happy to look into loan modification programs for you, since they want to avoid foreclosure, just as much as you do. But getting loan modification assistance, particularly through the Obama Loan Modification Program, can be a process.
Make sure you do your research before you work with one of the loan modification companies.. Look online for reviews and make sure previous clients have been satisfied. Most reputable loan modification companies have a refund policy when they are not successful.
There are certain key things you can look for to tell if a company may be fraudulent. First they usually promise to take care of all your loan modification problems with your lender and refinancing. They may ask you to make mortgage payments directly to them for their loan modification services. When someone asks you to start making your mortgage payments to them, run away as fast as possible!
Some loan modification companies ask you for the property deed. Definitely don’t do this! If a scammer files a bankruptcy your name and you do not participate in the case, the judge will dismiss it and the foreclosure proceedings will continue. This is one of the worse case scenarios because you will lose all the money you gave and have bankruptcy on your credit records. Another thing to watch out for is mortgage loan modification companies that say they are attorney based or backed. A loan modification attorney should be the one doing a loan modification and being backed by one is usually just a play on words and doesn’t mean a thing. You should always work with a loan modification companies that have a refund policy. Also never sign any papers that they send, unless you understand every single word on them. Your ultimate goal is to save your home, so do the research and talk to the right people. Home loan modification services through one of the loan modification companies or attorney may be a good first step.