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Are you in need of a mortgage loan modification and have questions about loan modification companies? Let's take a closer look at the services these companies provide and whether or not they can really help you stay in your home.

Loan modification companies have been coming out of the woodwork since the housing crisis erupted in 2007. The role of such a company is to serve as a liaison between the borrower and the lender and aid the borrower in obtaining a new set of more comfortable loan terms on a mortgage loan. The Loan Modification company should work as an advocate for the borrower. Their service is worthwhile only if they get the consumer a better deal than they could get on their own. Historically the niche has been filled by attorneys or groups of attorneys who are highly skilled and knowledgeable in the rules and regulations surrounding loan workouts. The dangerous thing about the recent proliferation of new loan modification companies is that now you have a lot of folks jumping into this industry with no prior knowledge of the subject matter - and they are learning on your dime. Even worse, there have been countless incidents of people being scammed by loan modification companies asking for large amounts of money upfront and then either disappearing entirely or claiming to be unable to modify the loan in question.

With the rollout of the federal program aimed at helping consumers modify their loans (The Making Home Affordable program), there is now a uniform set of guidelines and expectations governing loan modifications. If your lender is participating in the Making Home Affordable program then you should be able to work with them directly to get your loan modified and bypass all 3rd party loan modification companies and attorneys. Even if your lender is not participating in the federal program you should be able to work with them directly. Start by putting together a comprehensive list of your income and expenses and make sure you have a firm grasp on what size payment you can afford - once you know this number don't settle for anything higher. When you're ready to contact your lender you will need to speak with a loss mitigation specialist (see the list of phone numbers at the bottom of this article).

If you have tried to work directly with your lender, and are getting nowhere despite your best effort, it may be necessary to enlist the help of an attorney or loan modification company. You need to proceed with the understanding that a lot of people have been scammed by loan modification companies and you will have to be extremely careful when choosing your service provider. The ideal scenario is to use an attorney or group of attorneys who have been in the loan modification industry for many years. Avoid using a firm that has been in the industry for less than 2-3 years. As stated earlier, it is largely the new entrants into this field that have been causing problems. That's not to say that all new loan modification companies are bad - it's just a much safer bet to go with a company that was in the business long before the recent housing crisis. Choosing a firm that has been around for a long time does not ensure that you won't get taken for a ride. You will need to ask for references of satisfied clients that you can contact. You should also avoid all but the most basic upfront fees. There are plenty of companies that will be content to get paid the majority of their money after your loan is successfully modified.

Another point to consider is that a skilled and reputable attorney or loan modification company may be able to get you a better deal on your loan modification than what you can get on your own. If you have tried dealing with your lender directly and are not able to come up with new loan terms that are comfortable then you should seek help. Remember, it will almost always cost your lender far less to modify your loan than it will cost to foreclose on it. It is in their best interest to keep you in your home. With home prices plummeting and homes sitting on the market for months and months - your lender is not interested in owning your home. Loan modification can be a win for both the consumer and lender in a lot of cases.

Are you ready to start the loan modification process? Here are the numbers for the loss mitigation departments that handle loan modification services for several of the nation's largest lenders:

Mortgage Company Contact Info Ameriquest (800)-211-6926

Bank of America (800)-846-2222

Chase Mortgage (877)-838-1882 ext. 52195

Countrywide (800)-262-4218

Ditech (800)-852-0656

Fifth Third Bank (800)-375-1745 option 3

GMAC Mortgage (800)-850-4622

HSBC Mortgage (800)-338-6441

Indymac Bank (877)-736-5556

WAMU (866)-WAMU-YES

Wells Fargo (877)-216-8448

About the Author:

For more information regarding loan modification and many other personal finance topics, please visit our web site at consumer finance report. We feature a large and constantly growing article library covering a wide range of consumer finance issues. Our unique, proprietary content is specifically designed to inform, educate, and provide guidance to consumers facing financial problems.

Article Source: ArticlesBase.com - Questions About Loan Modification Companies

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Question: upside down mortgage?

I am currently in a mortgage with an interest rate of 9.9 %. My FICO is much higher from when I started with this mortgage. I want to refinance for a better rate, but I’m upside down by 35k. What to do, what to do.

Answer: Your interest rate is pretty high---believe me--you are not alone in being up-side down on a property. I would go for it.. Chances are your deprecation on your property will be made up over the long term of your loan if the interest rate is right. Even if your payment stays the same if they work the loss in and cut a few years off your mortgage-you are a winner.and sooner or later the market has got to level out.Property will never become worthless. Give it a shot--sit down and crunch the math before you sign anything.

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Loan Modification Watchdog

Two bills designed to address some of the problems resulting from the economic crisis have been signed by President Obama. The first deals with mortgage fraud and the other with helping families who are involved in a foreclosure situation save their homes.

Look out rip-off artists, enforcers of the new mortgage fraud bill means serious business. Almost half a billion federal dollars has been authorized to spend on targeting charges of mortgage fraud. Agencies the likes of the Secret Service, U.S. Postal Service and HUD are all getting additional funding to increase their security measures.

The Fraud Enforcement and Recovery Act now sanctions the government to go after companies or individuals currently out of reach. Currently, an incidence of mortgage fraud can result in investigation, prosecution, civil penalties and prison time at a federal level, opposed to the prior gentler state penalties previously enforced. This new Act applies to all types of mortgage fraud, no matter how minor the offence.

In the past, these schemes defrauded home owners, realtors, lenders and builders out of billions of dollars each year. The FBI intends to send a message that mortgage fraud will not be tolerated and it is expected that offenders will receive stiff penalties in order to set an example to others.

The second bill, simply entitled, "Helping Families Save Their Homes Act," is intended to simplify the process for homeowners to receive foreclosure financing and modifications to existing loans. It also makes it easier for the lender to offer these types of options and hopefully prevent an impending foreclosure.

The new law also offers protection for renters who find themselves living in a home whose owners are facing foreclosure. Under the old rules, tenants would have to move immediately following foreclosure, now they have the option to continue renting for a term negotiated with the lender. This makes sense on so many levels. Now hundreds of families who otherwise would have found themselves on the street, still have homes. Lenders no longer have to deal with the problems associated with the upkeep of an empty home. Hopefully this will reduce occurrences of complete neighborhoods of foreclosed houses sitting vacant and facing ill repair and vandalism. In many cases, reliable tenants are happy to stay on and maintain the property.

The law provides additional homeless relief, makes better use of local organizations in this role, and allows them more latitude when allocating federal funds for assistance.

Part of the reason that mortgage fraud became so widespread was attributed to the lack of a single watchdog affiliation to oversee the the sketchy subprime loan offerings, underwriting and lending schemes. Instead there were a number of small agencies, each only seeing part of the problem, but no single unit had the power to actually deal with the issue as a whole. Currently, the Obama administration has a plan in the works to establish a single federal agency designed to watch over everyone involved; from the small brokers to the major lenders.

About the Author:

Search Sandy Springs GA condos at TinaFountain.com, the home of Sandy Springs real estate experts.

Article Source: ArticlesBase.com - Mortgage Fraud Bill Signed, Sealed & Delivered