While there are benefits to hiring an attorney to get your mortgage loan modified, there are precautions you should take before simply turning your information and money over.
The main benefit of an attorney (and I would suggest you consult a real estate attorney) is they know the ins and outs of real estate loans. They have negotiating experience and are not emotionally involved with the transaction, therefore, can stay objective.
The downside is there are many attorneys and consultants guaranteeing loan modifications for all their clients, when in fact that is not the case.
The loan modification success is dependent on the lender and the investor holding the mortgage, therefore no one can make such a guarantee without first talking to the lender.
Over the past couple of years there have been far too many scams surrounding organizations claiming they can get a loan modified, principle reduced, save you from foreclosure when the only thing the homeowner ended up with is a non-refundable upfront payment to the loan modifier. And the worse of this is that unsuspecting homeowners believed if an attorney was handling this they would be safe.
Some people prefer to have someone with experience handle this for them, but If you have the patience (the process can take form one month to six months) to deal with your lender, then you might want to handle this yourself. Be prepared to submit two years of tax returns, two recent w-2 forms, two to six months of pay check stubs and two recent bank statements. This will be required regardless of who is handling the modification.
If you prefer to work with an attorney, be sure to find one that has loan modification experience. You can also check with the Department of Housing (HUD) counseling agency for a list of experienced attorneys that have handled loan modifications.
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