It seems that every time I turn on the radio or television I get bombarded with advertisements touting another company who claims they can help homeowners who are behind on their payments or even those who just have a “bad” deal by current standards. One such commercial even has President Obama speaking about the stimulus bailout plan. To be sure, there are many homeowners who are in trouble on their home loan. And equally sure, is the fact that lenders do not make the process of Loan Modifications Easy! Therefore, there is a ripe market for these so-called Loan Modification Experts”. I can give many reasons why a reputable, knowledgeable, skilled negotiator should be used by many if not most homeowners seeking to modify their loans. But there are so many ways the unwary homeowner can go wrong in selecting the right person to represent them:
1) Only hire an expert who has come recommended by someone you know has personal experience with this person
2) Don’t pay all their fee up front, hold as large a portion back as you can negotiate with increasing payments along the way until completion
3) Don’t buy into the Guaranteed Results promise. These modifications are out of their hands. There are factors in every deal that are impossible to figure out unless you work for the bank. Nobody can guarantee results.
4) Many negotiators work for or alongside an attorney. This is a good ideas as most negotiations don’t require an attorney, many times the lender takes you more seriously if there is an esquire attached to you negotiation team
5) This is a team effort. Your negotiator needs to know 100% of the true situation and they need your cooperation. Also, keep track of the progress. The good outfits are handling many files right now. It is easy for your file to get buried. The more you can do to nicely be the squeaky wheel, the better success you will have.
6) Never, ever sign any paperwork that is not completely filled out or that you do not clearly understand. Ask questions, there are many ways you can be scammed out of your home and have far reaching damage done to your good name. If you don’t receive a good explanation, don’t sign, get a second opinion.
Like every other profession, the buyer needs to beware and watch out for themselves. Desparate times give rise to creative schemes. You do not want to fall into that trap.
About Guy Violas
