New Loan Modification Laws For 2011

Published: 10th February 2011
Views: N/A

Well, 2011 is here and the loan modification industry is about to be all shook up. There are new laws going into effect in the end of January, 2011 that will impact many loan modification companies.

The new change is a federal law that prohibits upfront fees from any loan modification company. Of course, attorneys can get around this. This means that if you hire a company to help you get a loan modification approved, they can't charge you fees until your modification is approved by your lender.

This really doesn't effect Californians so much, as California has adopted this policy already, but companies who were doing business in California and providing loan modification services for homeowners in other states are definitely going to be impacted.

It's going to take a strong company to stand up to these new regulations. Sometimes, a loan modification can take up to a year to complete. Constant phone calls, faxes and updates need to be sent to the lender. Every few months they need your new bank statements or they have lost your tax return for the 3rd time. How can a company work for a whole year before getting paid? Who knows!

Not every loan modification takes a year to complete. Some can take a week if you are lucky and have the "perfect situation" coupled with the "perfect lender". Sadly, this does not happen too often.

If you are a homeowner, your first step is always research on how to get a loan modification. Then, you can be prepared and contact your lender. If that fails (which is likely), you may want to seek out the services of a reputable loan modification company. Atleast you'll know that they can't take your money upfront and do nothing...unless you get a bad attorney.

For some good companies that can help you get a loan modification approved, just visit the following links.

Read reviews of the best loan modification companies. These companies can help you get approved with no upfront fees. Click this link for more info: Loan Modification.

Report this article Ask About This Article

More to Explore