Here are some of the things you need to ask them before you sign the dotted line. Loan modification companies are everywhere. And just like any business, you might come across a company or two whose only motivation is to scam your money away.
Loan modification companies are everywhere. And just like any business,
you might come across a company or two whose only motivation is to scam your money away. Here are some of the things you need to ask them before you sign the dotted line.
Background And Experience
First, ask how long have you been in the loan modification business.
Experts are made, not born. And in most cases, it takes years to become one. It takes experience to know the ins and outs of the loan modification process. Companies who have only started may lack the knowledge and the skill to come up with different strategies to help you get the modification you want.
Second, ask if they have a strong background in mortgage lending.
This is always a good question to ask because the person has to be an expert in all aspects of mortgage lending. When the company has sufficient experience, then half the battle is won in most cases.
Third, get references.
Their clients will be the best resource in knowing how competent they are in handling the case. Don’t settle with testimonials. Ask the names of these people and call them.
Credentials
First, make some inquiries if they are registered with the Department of Registered Loan Modification Companies.
This government body is the only one who handles the loan modification companies. They have strict standards, and being a registered and duly authorized by this department is a privilege in itself.
Second, ask if they have Forensic Audit experience.
Your company should be adept in forensic audit analysis because there is an estimated 4 out of 5 loans that contain state and federal violations. Make sure your company is an expert at pinpointing the specific offenses.
Legality
Ask them if they are an attorney-based company.
Most intricate negotiations require the expertise of a lawyer, so make sure they have good lawyers on board
Policies
First, ask if they give guarantees in writing and if they have no ‘back-end’ fees.
Most modification companies give free counseling at the start of the assessment. They shouldn’t charge you a lot of money at the start of the meeting.
Second, question them if they have convicted employees.
Background checks are important. If you come across employees with criminal records, get another one.
Third, make sure if the loan modification processing is in house or contracted out.
This is something you need to ask because it can tell you if the company only acts as a middleman or simply out to only get a referral fee.
If they say in-house, check them out on the state bar association. If the loan modification uses attorneys outside the company, then it can be a tell-tale sign that they are acting as soliciting agents for an illegal law firm.
Fourth, check if they give any guarantees.
If your company offers a guarantee that you will get it, be careful. No one really knows what will happen. They can help in getting you in the door, but what happens next is anyone’s ballgame.
Fifth, ask what their costs are and make them put this in writing
Most companies either charge a flat fee or a fee based on a scale that depends on the size of the renegotiated payoff or the size of your first payment. They should give you a specific breakdown – if they don’t, forget about them. A loan modification fee should not go beyond $2500.
Loan modification is an important process that requires a tremendous effort from only the best people in the business. Make sure you hire the best ones who will collaborate with you in achieving your goals.
