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Loan Modification Companies in California

In California, many people wanting to keep their house hire a loan modification company.  A loan modification company in California will often promise to:
  1. Review your account and suggest a course of action.
  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 companies are better at negotiating with lenders.
  5. Buy you more free time in the property.

Why Hiring a Loan Modification Company May Not Be in Your Interest

What they don’t tell you is that loan modification companies' 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 companies:
The truth is this:
  • In reviewing loan modification requests, lenders are making a financial decision, not a legal decision.  The legal stuff follows after their financial analysis/decisions are made!
  • Loan modification companies in California are only able to get lender approval less than 10 percent of the time.  Many have gone out of business because they could not achieve adequate results.
  • Approved loan modification usually add the late fees and legal costs onto the back-end of the loan and extend the loan term to 40 years or more.  Quite often, the borrower’s costs actually increase.
  • In evaluating the small number of loan modifcations that were approved, a Fitch Rating Agency report (they rate the banks’ performance) estimated that 65 to 75 of homeowners (conservatively) would “re-default” on their loans within 12 months of receiving loan modification approval. 
  • We cannot force lenders to approve a loan modification by hiring a loan modification company. lender’s loan modification offers add the late fees and legal costs onto the back-end of the loan and extend the loan term to 40 years or more.  Quite often, the borrower’s costs actually increase.
  • The lenders simply do not want to lose money on a loan modification.  We can't force them without a strong legal reason, and they can afford better lawyers than you.
What is a California Home Owner to Do?
Your lender is making a financial decision and if the numbers aren't there, the deal won't be either. A loan modification company may help you with the process of loan modification, but they may not be able to get you a favorable deal.
Our short sale company is different.  We work tirelessly to provide the evidence to support a favorable financial decision to help you dump your debts.  Our expertise is in finance and we know how to get short sales approved favorably.  We understand the lender's financial issues and choices, and work to present your personal information in a way so they can understand why they should approve your request for short sale.
 
Find out why short sale might be a better option.