How can a Loan Modification Attorney assist you?

Why people hire loan modification attorneys in california

In California, many people wanting to keep their house hire a loan modification attorney.  A loan modification attorney in California will often promise to:

1. Review your case and offer their legal perspective.
2. Use the correct documents and correct negotiating techniques based on their expertise in the law.
3. Stop the foreclosure proceedings.
4. Obtain faster and better results because loan modification attorneys are better at negotiating with lenders.
5. Buy you more free time in the property.

They will even tell you that if you don’t use a loan modification attorney in California, you will not get favorable results, and that you may lose your home.  Regrettably, these attorneys are “over-selling” the benefits they can provide with no proof! 

Why hiring loan modification attorney may not be in your interests

Have you noticed that when you ask a loan modification attorney a simple question, you can often get a very complicated response that does not really answer your question?

What they don’t tell you is that loan modification attorneys' success rate is very very low.  Based on their past performance, you will very likely lose your home and completely destroy your credit rating in the process.  You must avoid these problems with loan modification attorneys:

• Loan modification attorneys in California are only able to get lender approval less than 10 percent of the time.
• The lender’s loan modification offers often re-amortize the late fees and legal costs back into the loan and extend the loan term to 40 years or more.  Quite often, the borrower’s costs actually increase.
• According to the Fitch Rating Agency (they rate the banks’ performance), it was estimated that 65 to 75 of homeowners (conservatively) would “re-default” on their loans within 12 months of receiving loan modification approval.

The truth is this:

• In reviewing loan modification requests, lenders are making a financial decision, not a legal decision.  The legal stuff follows after the financial decision is made!
• You cannot force a lender to approve a loan modification by hiring a loan modification attorney.
• The lender has better attorneys than you.