Be Careful How You Negotiate Your Washington Loan Modifications

First of all, if you are negotiating a loan modification on your own as a homeowner, good luck, because if you lack knowledge, time, organizational skills or a strong ability to negotiate, your results will most likely suffer.  I say this as an expert who has watched multiple short sale and loan modification files go down the drain because a homeowner decided that they know more about the business then myself and/or the bank’s hired negotiators. 

So many homeowners resort to working with non-profit organizations for assistance on their loan modifications.  While this may work for some, most homeowners will find that they are dissastified with the lack of “hands on” help that such an organizaton can provide.  This is because non-profits are not directly paid for closing loan modifications, so naturally, most of them will not work as hard as someone who is hired to do the job.  In the words of some of our clients, non-profits simpy “don’t show teeth.”  Yet put yourself in their shoes.  If you weren’t getting paid to work really hard on a particular loan mod, well, would you?

I have even had homeowners tell me about how members of non-profit organizations would come over to their house and propose a fee structure for their services (on the side).  Isn’t that messed up?  Now why would members  of a non-profit organization unethically use this medium as a tool to attract PAID clients? 

Probably because they realized HOW HARD it really is to successfully negotiate a loan modification.

Now keep in mind that if you do hire a negotiator, that negotiator must be a licensed mortgage officer to legally negotiate a Washington loan modification.  I believe this is the case for a majority of the US.  I support this requirement 100% as it automatically discourages “scammers” or people “off the street” from attempting to launch their own loan modification businesses at the expense of an unsuspecting homeowner.

So what you should look for when hiring a negotiator?

1.  Licensed Mortgage Officers

2.  At least 100 successfully modified loans

3.  90%+ success rate

Furthermore, in order to make sure that you do not overpay for loan modification services or that you are working with a legitimate company, you need to compare the services of that company with what the Department of Financial Institution states in their interpretive statement, found here:   http://www.dfi.wa.gov/cs/interpretive_statements/mortgage/IS-2009-01.pdf

In summary, do you your research before attempting to negotiate a Washington loan modification and make sure that if you do hire a person or a company, that they meet every single government mandated requirement along with the characteristics that I mentioned above.

I have one company that I personally recommend for loan modifications in all 50 states.  They meet every requirement listed above, have stellar consumer reviews as well as the “OK” from most relevant government officials.  For a free consultation with them, simply click this link now or scroll up to the top of this website and click the “loan mod” tab. 

Kevin