Do the mortgage companies want to help? - By: Billy Alverado

While you may have heard about a lending institution that may have been helpful in a particular situation, this is the exception and not the rule.
Most mortgage companies are not interested in trying to assist you unless they have something to gain. This does not mean that all mortgage companies are trying to stick it to the homeowner but simply that a mortgage company is a business and as such their primary concern is their business. Most mortgage companies will assist you if it is in their best interest.

Honestly, the mortgage companies simply do not have enough account representatives to assist every distressed homeowner. Banks are suffering their own setbacks and as a result have made layoffs and cutbacks. The very people they have laid off are the people that created these now defunct loans.
News reporters have filled the headlines with stories about scams pertaining to mortgage modifications. They have instilled in the already distressed homeowner fears of illegitimate business practices conducted by mortgage negotiators. While there have been an insurgence of scam artists taking advantage of the homeowner and entirely too many cases of companies taking money upfront and not doing anything, there are legitimate licensed agencies who provide honest negotiating services and that are being effected by the bad press.

In an attempt to report these scams they in turn fill the concerned homeowners head with paranoia. The press will tell you "there is no need for negotiating companies, that mortgage companies provide these services. Frankly that just makes no sense. Would you hire a thief to guard your valuables?

Do you want the same guy that put you in this situation to be the guy who takes you out of it?

So where do you turn if you can't rely on the mortgage company?
Who can you trust?

How do you know a mortgage negotiator is legitimate?
1. They will not charge you a fee upfront. They will only make money if they are successful. Along those same lines they won't expect half of their fee if they fail. They realize that if you can not afford to pay the mortgage company that you can not afford to pay them if they are not successful.

2. They will not accept the first offer placed by the mortgage company. A good negotiating agency will realize that the bank is not going to offer their best deal upfront. They will also realize that it will do no good for them to settle on as deal you still can't afford.

3. They will offer a free consultation by phone. A reputable company will not charge you a deposit until they review your situation and know they can help you. A good reportable agency will use their time wisely and only represent you if they feel confident in their ability to be effective in your particular case.

4. They will be endorsed by an attorney. They will be able to legally stop the foreclosure

5. They will have a reputation of being able to buy you time. They should be able to freeze your payments up to 6 months, in the case of financial hardship. They should also be able to stop any annoying phone calls you may be receiving from the mortgage company.

6. They will design a plan that suits your particular situation. - such as a low rate with a 30 to 40 year fixed term. They will be able to have late payments attached to the back end of your loan.

So while there is certainly an obliteration of scam artists out there masquerading as negotiating services you will need to closely interview and investigate the service that will negotiate your mortgage modification. You do not want to trust the bank to provide you the best possible modification plan if you do not have the proper support of a talented agency. Would you leave the key to a candy store in the hand of a child?

About the Author

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