It is quite the understatement to say that Real Estate has changed over the past few years. Arizona Loan modifications, short sales, and foreclosures have become common practice in the Real Estate and Mortgage Industry. With this change we have unfortunately seen more scams preying on desperate homeowners more than ever before. I have received numerous calls from homeowners who paid loan modification companies only to find out that these companies did nothing for them. In some cases, they did not even make contact with the bank! For some I was able to complete successful short sales, or direct them to non-profits to assist them with their loan modification. Sadly, for others it was too late.
There are a lot of companies, just run a Google search, that are offering loan modification services to homeowners in distress. While not all of these companies are fraudulent, it is critical to be educated on this process. Free assistance is available, which you can find information at:
http://www.makinghomeaffordable.org/
On this website you can learn about the Making Home Affordable Plan, review the guidelines, find a HUD approved counselor in your area and more. Even if you do not qualify for this program, there still may be options for modification with your current bank/servicer.
Here are some things to look out for if you decide to use a loan modification company:
- 1. “Attorney-directed” vs. “Attorney-based”. An attorney based loan modification company may consist of former loan officers and processors, and while an attorney may be a phone call away—an attorney will not be personally handling or negotiating the file.
- 2. Charges a Huge up-front fee often without reviewing your file or being interested in your circumstances.
- 3. Is there an approval process? Approval should not be determined on the first phone call. The application process should include your budget, income, property information and hardship.
- 4. Get promises in writing. Verbal contracts are not legally binding. Make sure you read through the contract and understand what services are being provided.
- 5. Stop Foreclosure legally. A loan modification may take longer, and the home could go to foreclosure during this process if not handled properly.
You may also consult with an attorney for a small consultation fee before deciding how to best move forward. I have dealt with several attorneys who are competent and have a high success rate with Arizona loan modifications, as well as short sales. A consultation will typically cost between $100-$200 which is a small price to pay considering how much is at stake.
For a free report on your options to foreclosure, including loan modification and short sale visit: www.AZForeclosureHelpToday.com or call Jen Wehner at 480-748-6925.
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