Top Loan Modifications Companies

by tammy on March 26, 2010

Although it is not strictly required, many people that decide to approach their lenders with a loan modification proposal opt to hire third party loan modification specialists to help them with the process. Since loan modification is basically a process of negotiation and the lender has to voluntarily agree to the terms, having an experienced negotiator can be extremely helpful. This is because they already know what sorts of terms to ask for and how to argue the case in a way that the lender will appreciate. However, before hiring a third party loan modification specialist to help, it is important to note that there is no national regulation of the loan modification industry, so just about anyone can claim to be a loan modification specialist and can charge fees for their services regardless of their actual knowledge or experience.

The lack of regulation means that the consumer has to be careful when choosing a loan modification company. Making a bad decision can not only result in failure to get an acceptable loan modification, but can also result in costing money that most people in need of a loan modification can scarcely afford to lose. As is usually the case, the better the service, the more it is likely to cost; but at the same time using a top quality company is also much more likely to get you a loan modification that meets your requirements.

Generally speaking, the best loan modification companies are those that that use fully licensed attorneys as their representatives to the lenders. Frequently, when a mortgage is held in an aggregated entity (like a trust) and administered by a management company, the management company actually gets more money from foreclosure than they do from loan modification, so they are less inclined to negotiate. However, though they may receive more money for foreclosures, more often than not any costs associated with litigation (excluding foreclosure proceedings) have to be paid directly by the management company. Therefore, approaching them through an attorney automatically carries the implied risk of a lawsuit, making the management companies more inclined to listen to the modification proposal.

Further, competent attorneys should have good eye for detail and understand the workings of loan documents and contracts from the outset, making them much better negotiators than people less familiar with such instruments. An attorney is much more likely to notice some subtle changes hidden in the “fine print” of the modified loan and more likely to be able to provide their clients with good advice about the acceptability of a particular modification offer.

This is why most of the top loan modification companies are either law firms in their own right, or retain lawyers for their loan modification projects. However, loan modification companies that use attorneys will also cost considerably more than many of the less professional freelance operations advertising online or in local sources. At the same time, many of these top loan modification companies offer satisfaction guarantees and free initial consultations to limit the risk to the consumer from hiring them.

Although some loan modification companies that do not use attorneys may offer good value for the money and legitimate services, in general the top loan modification companies are characterized by the use of lawyers. The cost for these top companies may be higher, but the chances of success are higher as well.

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