How do I Choose the Best Loan Modification Attorney?

Kay Paddock
Kay Paddock
Businesswoman talking on a mobile phone
Businesswoman talking on a mobile phone

A homeowner who falls behind on mortgage payments is at risk of losing his home. The mortgage is in default, and the bank can repossess the home through foreclosure. Loan modification is one of the methods many people use to prevent foreclosure. Banks and lenders will typically work with a loan modification attorney to renegotiate the terms of the mortgage. A good loan modification attorney should have a great deal of experience in negotiating things like lower interest rates, lower loan principal amounts and lower monthly payments for clients.

Private companies often advertise that they can greatly reduce mortgage payments and interest rates. Some legitimate firms that do this are probably available. Loan modification help and foreclosure prevention, however, is an area that is full of businesses that commit consumer fraud. Sometimes they charge heavy up-front fees and provide no real guarantee that the loan will be modified to a reasonable degree. Fraudulent companies that advertise loan services often do not even have legitimate loan modification lawyers on staff, and have no professional credentials.

If you are in default, the best course of action may be to avoid the risk of outright scams and contact a loan modification attorney instead. Attorneys may have several areas in which they work including negotiating mortgages with lenders. A qualified lawyer can usually help renegotiate your loan terms with your bank or lender to make paying the debt more manageable. They may also be able to explain the other options available to help prevent foreclosure.

Before hiring a loan modification attorney or any type of lawyer, search for that attorney through your state's chapter of the American Bar Association or your country's regulatory agency for legal professionals. This search will usually reveal if there have been any official complaints filed against the lawyer. It would also reveal fraud if the attorney does not happen to be practicing legally, which may be the case with some who claim to be lawyers working at loan modification companies rather than law firms.

It is important to realize that individuals can contact their banks and handle their own loan negotiations by doing the talking and paperwork themselves. The best loan modification attorney, however, will be experienced in dealing with the loss mitigation departments that are designed to make more money for the bank. Qualified lawyers typically know how to get the best rates for clients. They should know what to say and how to recognize when the lender is not offering the best solution. Choose a lawyer with experience in handling these negotiations for the highest chance of getting more affordable mortgage loan terms.

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