How to Detect False Promises Made by Loan Modification Companies

How to Detect False Promises Made by Loan Modification Companies
by: Bridget Toomey


Over 3-million American families who have been affected by the current
economic downturn and are struggling with their mortgages are looking at
getting their loans modified in order to save their homes from going into
foreclosure.

While loan modifications remain one of the best options for saving your
home, many homeowners complain about falling victim to false promises
made by certain loan modification companies. Families should be careful
of companies who would say almost anything just to get your business only
to run away with your money or complicate things further. It is very
important for homeowners to learn how to differentiate between the
legitimate companies with the ones that are only after your money.

The following points are a few things that you can check while talking to
a loan modification consultant to know whether they are telling the truth
or simply trying to show you the best case scenario in order for you to
pay them an upfront fee without getting an approval from your mortgage
lender:

1) Loan modifications on an average take about 3 to 4 months to complete.
From preparing the application with required documents to actually
applying and then following up with the mortgage lender, it takes a lot
of time. The loan modification consultant also needs to spend time in
negotiating with your lender to get the best possible modified mortgage
plan.

All of the above takes about 90 to 120 days to complete depending on the
lender and their own schedule. While talking to a loan modification
consultant, if they keep telling you that they can get your loan approved
for a modification within a month or so, then it is quite clear that they
are not telling the truth. It is also dangerous to sign up with a company
who says it takes about a month to complete an application as they might
miss important details on your modification which lead to your
application being rejected. Since the loan modification consultant
already has your money for their services, they would not care if the
application was approved or rejected, they would just simply try to rush
things and move to the next client.

2) Another thing you must keep in mind is that not all loan modification
applications are approved by the lenders. Approval depends on a number of
factors such as the reason for your difficulty in not keeping up with
your mortgage payment, ability to pay the modified plan if approved,
current situation in terms of job, savings etc.

Many companies would tell you that you will be approved by the bank and
take their huge sign up fee. This is just another false promise as the
company needs to check your situation and consult with your lender and
their team of consultants before determining whether you qualify. Only
after completing all of the necessary steps can you truly know the
outcome of the loan modification application.

You need to work with a company who is honest about the application
process with you from the beginning. Learning whether you qualify for a
loan modification is one of the most valuable services a loan
modification consultant can offer to you as it would then save you a lot
of money and time which can be utilized on other options to save your
home.

3) The last point you need to check is whether a company tells you that
you need to pay a fee before your loan modification can be approved. This
is not true at all and you should work with only those companies that
guarantee no fees until your loan modification application is actually
approved by your mortgage lender.

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About The Author
Bridget Toomey is the founder of The Loan Modification Foundation, a home
loan modification company backed by attorneys and real estate consultants
specializing in loan resolution and modification services. We guarantee
no fees until your Loan Modification is approved by your mortgage lender.
For more information visit www.LoanModificationFoundation.com