If you are trying to find a way to save your home from foreclosure, you may be considering hiring one of the many loan modification companies that offer to negotiate for you with your lender.  The idea is that by paying a professional you will have a better chance of getting a loan modification that lowers your monthly payment so that you can afford to stay in your home.  But hold on-before you hand over thousands of dollars to a loan modification company make sure you are working with someone who is qualified, experienced and reputable.  Here are some things to look out for before deciding on one of the many loan modification companies seeking your business:

1. First, verify that the loan modification company is licensed and operating according to local laws and regulations.  Many states require that the company be licensed by the Department of Real Estate or other government entity.  Find out what you local regulations are, then make sure the company you are considering is compliant-many are not
2. Confirm the physical street address and check for any local business licenses
3. Contact the Better Business Bureau to verify any complaints
4. Upfront fees are regulated by many states, make sure that the upfront fee agreement is legal.  Again, verify your local regulations before paying anyone
5. How long has the loan modification company been in business?  What is the background and experience of the principals?  Find one that has staff with loss mitigation experience
6. Attorney led loan modification companies are subject to different requirements.  They are allowed to charge a retainer for their services.  Just make sure that the attorney you hire will actually be working on your file and not handing it over to an affiliated group of processors for a referral fee.  An attorney who specializes in loss mitigation can provide additional services to get the desired results from reluctant lenders

Sounds like pretty common sense stuff, but sadly many vulnerable homeowners have forked over their last few thousand dollars to loan modification companies that were not qualified or operating legally, losing both their money and a chance for help.  There has been very little regulation or oversight for this mortgage industry offshoot, but that is starting to change as Attorneys General in several states have already closed down some non-compliant companies.

Keep in mind, that while there is no guarantee of success, homeowners can increase their chances by working with experienced, reputable and competent loan modification companies.  Take the time to research and learn about your options before hiring any company.  Most folks wouldn’t write a check to a company they got an email or flyer from without finding out more about them, would they?  Use the same precautions with loan modification companies.  There are some very competent, well meaning companies striving to offer assistance to homeowners in need, the trick is to find one that has the experience, staffing and commitment to achieve a loan workout solution to avoid foreclosure.

You can get the help you need to understand the  loan modification process, learn what to expect and be able to make an informed decision by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com