Questions for a Modification Company
Getting a mortgage modified through a modification company is something that a lot of people will go through at one point or another throughout their home ownership. Loan modification is essentially the process of permanently changing one or more terms of your mortgage agreement. These agreements need to be made by both parties and the loan cannot be modified without consent of both the lender and the borrower.
There are a lot of things that can impact the success of your bid to have your loan modified, and a lot of it rests on the shoulders of the modification company you select. This choice can have a big impact on the success of your bid to modify the terms of your mortgage, so it's one that you'll have to make after a lot of research. Thankfully, there are some simple, straightforward questions you can ask any modification company to see if they're a right fit for your unique needs.
Does the Company Have a Strong List of Successful Modifications?
This is the first and most important question you need to ask any modification company before you decide to work with them. The success with which these companies can negotiate new terms on mortgages is of the utmost concern to you. Their success rate on past loans can be a very good window into their potential success rate with you on your loan. While it's generally not possible to find a loan modification company that has successfully modified every loan brought to it, a good track record is still something you want to look for.
A great way to tell if the company has a good reputation is to ask if there are any people they have helped in the past who could vouch for their success. This can lead to a simple qualification that can end your search very quickly.
Ask About the Company's Rate Structure
There are a lot of different types of modification companies out there for you to choose from and they all operate on their own types of rate structures. In some cases, the company may charge a set fee for their services that will be told to you upfront. In other cases, the company will charge an hourly rate that will place your final bill at whatever the hours come out to. In still other cases, some loan modification companies will provide more specialized pricing structures that more accurately reflect the needs of their customers. Whatever the case may be, it's smart for you to go into this type of a thing with your eyes wide open.
Ask About their Experience with Your Lender
Different lending institutions will be more or less easy to work with depending on their previous history. If you have your mortgage through a lender that is well-known for not agreeing to modifications easily, then you will need to be sure you're working with a company that has had success before. A lot of the work that goes into developing a mortgage modification company revolves around building relationships with lending institutions on behalf of clients. Modification specialists spend a lot of time meeting local representatives from the lenders and building a rapport with them over a long period of time. You want to be sure that your modification company has an established relationship with your lender. This can put the company in a much better position to negotiate on your behalf.
Ask About the Company's Legal Department
In most cases, loan modifications are not a very big deal and they can go through quickly. However, there are also instances where the lender may become intractable and unwilling to negotiate any of the terms of your agreement. In these cases, you will need to be sure that your modification company is willing to go the extra mile with their legal department.
Most loans contain very small pieces of language or word things that are in violation of the law. These aren't necessarily nefarious things that are done on purpose. Most of the time, these are small things that were made illegal during the year your mortgage was signed but that weren't caught before you signed on. If the legal team at your mortgage modification company can find these little flaws in the language of your mortgage, then they will have a lot more traction when it comes to renegotiating your mortgage.
Take it Slow
A lot of people only think about talking with a modification company after they've become desperate. Even if you're in trouble and are worried about losing your home, you should not just go out and pick the first modification company you find. Taking the time to do a deliberate search and ask the right questions can result in a much more favorable result for you in the end.
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