Phoenix AZ loan modification companies are currently not required to be licensed and are completely unregulated.
Since there is no loan originated, there are no mortgage and banking laws to regulate the loan modification industry. Which means that anyone, and I do mean anyone, can start your own loan modification company today.
In fact, after one quick google search, I found more than one entrepreneur offering his “quick 10-step guide'” to starting your own loan modification company.
Please don’t get me wrong. There are a lot of honest loan modification companies doing good work and successfully keeping people in their homes.
Just be aware that there are no requirements to be in the loan modification business, so there are dishonest people praying on frightened homeowners promising hope with no substance.
Here are a 7 tips to follow when deciding on a Phoenix AZ loan modification company.
- You can do this for free and do it yourself
- HUD offers foreclosure counseling for free
- Attorney Loan modification companies have a higher degree of accountability to the State Bar Association.
- Loan Modifications should not exceed $2,500
- Demand a forensic audit of your loan
- Ask for references of prior clients who have had success
- Be wary of guarantees as there is no assurance that the loan modification will be accepted at all or at what terms
Keep in mind that the government has established loan modification as a loss-mitigation program to help prevent foreclosure.
Loan modification is a great tool to help those facing foreclosure stay in their home.
Loan modification is not something to be afraid of at all. In fact, for many, it is the best thing they have done financially since they bought their home. I had a client who just lowered their payment to a fixed rate of 3.75% and lowered the payment from $3,100 tO $2,000.
I just want you to be aware that there are some shady people out there who do not have your interests in mind before their own.