Loan modification assistance is a widely sought service especially during these tough times of financial crisis and economic instability. Loan modification is permanently changing the current terms of a mortgage to bring the making of payments within the borrowers capability. Loan modification is a vital part in keeping the mortgage industry from going into ultimate collapse as it provides ways for financial institutions to collect cash from their borrowers which enable them to remain in the business. Different from the belief of most homeowners, banks would rather receive a smaller amount of payment from its borrowers than take possession of their homes via foreclosure. This is because having enough liquid assets especially cash to keep their day to day operations going is vital for their survival. And the maintenance cost of keeping homes they have taken through foreclosure is quite high and does not always pay off as not all these homes will be sold.
Loan modification has saved thousands of homeowners from losing their homes to foreclosures, but the growing popularity of the loan modification solution has also given rise to the number of predatory companies who claim to offer good loan modification but in fact are just aiming to rob homeowners of their money and sometimes even their homes. Great caution is therefore highly advised in choosing your loan mitigation company. And one sign of a good loan modification company is having some attorneys in its patrol.
Advantages of Having an Attorney Assist in Loan Modification
Loan modification being a legal process may sometimes prove to be difficult to grasp for ordinary laymen. There are Federal and State laws such as Real Estate and Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA), law of contracts and other laws that set the rules when it comes to lender – homeowner relationships. Only an attorney can advise you of all the possible legal remedies you can take and with his experience and expertise can protect your rights and keep you from being scammed. Having an attorney by your side also greatly adds up to your convincing power and credibility.
The Difference Between Attorney Assisted Loan Modification Companies and Law Firms
Loan modification companies even by having attorneys in their workforce cannot offer legal advise on matters other than loan modification and they do not possess the capability to directly litigate.
Law firms tend to get the fastest reaction from the bank as in practice they will immediately request the documents, records, and proposals approved from the lender and then send an assessment to the lender. Most banks separate proposals and letters from law firms from other proposals and letters due to fear of a possible law suit.
Law firms have more qualified personnel to handle your foreclosure, deed in lieu of foreclosure, short sale or bankruptcy if necessary but loan modification companies have the experience and specialization in the loan modification field.
Protection from possible tax problems is best handled by a law firm.
Attorneys have privileges when it comes to the collection of fees, they already have the right to receive payment just by accepting the case. Loan modification companies on the other hand as stated in the California Civil Code 2945 cannot collect a fee until the loan modification is complete even if the bank has already filed a Notice of Default on the homeowner’s property. Also, loan modification companies cannot have the homeowner sign a contract and collect money without prior approval from the Department of Real Estate.
Attorneys are required to give personal consultation with the client upon request.
24VIPINC is a good attorney-backed loan modification company that is adept at saving homes from foreclosure, and its partner CallComLeads supplies the best telemarketed loss mitigation leads and loan modification leads for those companies looking for homes to save.