Mortgage Renegotiation Companies How To Choose

Over the past few weeks I have been seeing a lot of talk on the television about the Loan Modification and Loss Mitigation business. Not much has been talked about in a positive manner. I have seen whole news broadcasts devoted to what's wrong with some of the companies and very little, if any, good about any of them.

It's true. Not all of these companies are created equal. In fact, some are down right terrible. It is always in the consumers best interest to be proactive and do their own due diligence when dealing with something as valuable as their home. This means to get up off their duffs and make a few phone calls. I am going to explain a couple of things to look out for and how you can help to cover yourself during the process. I can only speak from the perspective of being located in California. We do work all over the country, but we adhere to the local California laws, and we do our own due diligence to follow the laws of all states.

Most of the broadcasts that I have seen are filled with angry homeowners who feel that they paid for services that they did not receive. Boy, I can see their point. Collecting fees up front is normal in this business. Here in California you must be approved by the Department of Real Estate to collect these up front fees, and here's where things start to get sticky. Not many are approved. At my last count only about 18 of us are. Those of us who have this DRE approval do not wish to lose it and we act with the utmost integrity and ethics. In fact, we don't even charge this fee until we know we can help you in one way or another. So be careful. Call the DRE and ask for the list, or give them the name of the company you are thinking of using.

The next thing to be watchful for is those companies who contact you out of the blue, when you enter foreclosure, saying that they can help you. They will also ask you for up front fees. This is only legal if the fees are being collected by Attorneys. Again, be careful and make your calls. Call the Better Business Bureau, and call your Department of Real Estate to find out if an Advanced Fee Agreement is on file. Many of these companies are not on the up and up and you could loose money you don't have.