Loan Modification Companies

The FTC is cracking down on loan modification and foreclosure relief companies। Loan modification companies can provide an excellent service for customers who are looking to reduce their mortgage payments and stay in their homes. What the FTC is trying to do is crack down on the companies who are falsely advertising that they are affiliated with the government and can guarantee results.

A legitimate loan modification company will prequalify the customer before they charge any type of fee for their service। The legitimate loan modification company wants to make sure that they have a good possibility of helping the customer through taking a complete application and running the application through a thorough prequalification test.

Unfortunately with the onset of the housing crisis a number of loan modification companies that are less than honest have come onto the market and are giving the entire industry a bad name. In an effort to eliminate these unscrupulous companies the FTC has sent 71 written warnings nationwide. They are not naming the recipients because they have not been investigated yet. The FTC searched the internet and has sent letters to advertisers who raised red flags based on their advertisements.
It is true that the homeowner can get a loan modification through their lender without the help of a loan modification company। The process will take some time and can be very cumbersome. The homeowner might spend months and numerous calls without any success. The legitimate loan modification company will be able to get a loan modification done for the homeowner much quicker and with much less time spent by the homeowner.

My recommendation is to call lender to see what you need to provide them with to get qualified for a loan modification। See if you can accomplish the task first. If you cannot then call a loan modification company. Homeowners can also call the Hope Now Alliance at 888-995-HOPE, or go to makinghomeaffordable.gov

Lenders have become more receptive to the idea of loan modifications since the government passes new legislation on March 4th, 2009. Read about this here: http://nationwidehomerelief.reachlocal.net/

Take a look at www.thebriteway.com if you need a mortgage!

Have a great Wednesday