Best Way to Choose loan modification company to Stop Home Foreclosure

Are you one of millions of American homeowners that is currently attempting to modify their mortgage on their own with little or no success? Is your lender not responding to your request for a modification? Are you frustrated and do not know what to do?

You have probably heard that most loan modification companies are scam artist and are only going to steal your money. While it is true that their are many loan modification companies that are preying on homeowners during these difficult times, it is also true that there are loan modification firms that are legitimate and can help you take advantage of this once in a lifetime opportunity. But, how does one find an honest loan modification company? First in California only attorneys or real estate brokers that are approved by the California Department of Real Estate may be paid a fee to perform a loan modification.

That limitation eliminates many individuals and companies that are asking for money to perform loan modifications. Thus, the first question you need to ask is whether you are dealing with a lawyer or a Department of Real Estate Approved firm. Many will claim to be "working with" or "affiliated" with a lawyer or a DRE approved firm. Obviously, it is better to work directly with the lawyer or DRE approved firm, rather than someone who is affiliated. Even if you speak to someone and they claim to be working directly with a lawyer, you need to find out who the lawyer is? How long has he been practicing law? What type of experience does he have with real estate? Where is the lawyer located? How long has the law firm been in business? Does the law firm have a website? If you can't find evidence of a real law firm you need to move on.

If you speak to someone who claims to be DRE approved, ask for them to provide documentation proving this. In almost all case they will not be able to do so. If you are provided documentation the name of the firm approved will not match the name of the company that you are speaking to. If you are speaking to a non lawyer, find out why he thinks he can do a better job modifying your mortgage than a lawyer can? Is this person making a guaranty? It is against the rules to make guaranties. If something sounds to good to be true, like you mother always told you, it probably is. Look for a firm that takes the time to legitimately go over your debt and income to determine whether you legitimately are a candidate for a loan modification.

If you are told that you are a candidate for a modification, what type of refund is offered if the firm is unsuccessful? In conclusion, there is only a short period of time you will have the ability to modify your mortgage and take advantage of the historically low interest rates. Price is always important, but it is probably more important to take the time and find a firm has the ability to do what you have paid for, to get you a great modification of your mortgage.

About the Author

Geoff Morris is a licensed California attorney and is a partner in the law firm of Lopez & Morris,LLP. Mr. Morris is an experienced real estate litigator, loan modifications , family law and has been practicing law for 18 years.