When President Obama issued the directives for banks to engage in home loan modification programs, there was a lot of rejoicing. Home loan modification ventures allow qualified borrowers the ability to modify their mortgage payments so that the repayment of the mortgages can be affordable. This means the borrowers will have to negotiate new terms or they will have to appoint someone to negotiate on their behalf. Usually, they will look for a home loan modification company to handle the renegotiations for them. This may be a wise move but only if the proper company is hired. Here are five questions to ask before you hire the company:
Are you an attorney? Now, does a loan modification officer have to be an attorney? No, absolutely not. However, those that are attorneys are often able to perform a tremendous job negotiating on your behalf. They are also bound by the oversight of the state bar which means they will be more likely to follow proper ethical standards when negotiating. Their experience working with clients and representing them also helps them better negotiate for you. For many, hiring an attorney to handle such negotiations can yield huge positives.
What type of background do you have in finance and contracts? This is an important question to as because financial and contractual matters are somewhat complex and that is why they require skilled help to navigate. Hiring a professional that has a background in such areas is always wise. This way, you can feel confident that the proper perspective is being brought to the negotiating table.
Do you have a background in lending? “Lending” could refer to working for the lender, a collection agency, a bankruptcy lawyer, or any other profession that deals with lending contracts. Such experience can prove highly valuable when it comes time to deal with all the various aspects that a home loan modification entails. There exists the problem with hiring fly by night modification services. They simply are not qualified to handle your negotiations and should be avoided.
How much do you charge? No, this is not a crass question to ask. It is an important one because, upon asking several agencies about the fee, you can determine what prices are fair to ask. It is not necessary to pay more than you need to for adequate modification negotiation services. So, always seek to ascertain what a fair price actually is.
How long have you been involved with renegotiating home loans? This is probably the most important question of all. Really, would you want a complete novice handling your home loan renegotiation? Remember, the lender will also be seeking to look out for its own best interests. In some cases, there are only renegotiating because they are compelled by law. That means you will need someone who is well versed in such situations on your side. Look for someone with experience. You do not want to suffer due to someone else’s limited background.
Tags: loan modification, mortgage
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