Mortgage Loan Modification Brokers: An Ironic Twist
If the local tire salesman was responsible for slashing your tires, would you pay him to install brand new tires on your car? If the local handy man was responsible for throwing a brick through your window, would you pay him to install a brand new window? Probably not, so keep that in mind before hiring any mortgage loan modification brokers.
As the housing market fell, so did the number of employed mortgage lending industry employees. With fewer people buying homes, lenders simply didn’t need as many employees to issue their loans. As more mortgage brokers found themselves unemployed, more loan modification businesses sprouted up. These newly formed companies ran by former mortgage brokers now calling themselves mortgage loan modification brokers now offer assistance to the very borrowers who have been forced to face foreclosure because of the bad loans issued by the former mortgage brokers in the first place.
On some level, the twist of irony seems like a genius idea. Issue thousands of bad loans, wait for the market to come crashing down, and offer to save borrowers from the very foreclosure that was created by the bad loans in the first place.
While it would be unfair to say that all loan modification brokers are crooked, it would be unwise to trust every loan modification broker willing to take your money to fix a problem that they probably contributed to. Even though many mortgage loan modification brokers will deny any such involvement in the fall of the housing market, one must ask themselves if they want to hire a person who allowed unethical predatory lending practices to continue. They should also consider if they want to hire a modification “expert” who lacked the intelligence to realize that what was happening in their industry was wrong. If they lacked the insight to recognize predatory lending from within the lending industry, what are they going to fail to recognize when it comes to negotiating a lower monthly payment for a borrower?
Attorneys make the best representatives when requesting a loan modification because they are neutral third parties who are able to objectively view the facts from both sides of an argument. They have the training necessary to dissect complex legal documents to ensure that both parties get the services and compensation they are entitled to. Former mortgage brokers now acting as mortgage loan modification brokers usually only know as much about loan modifications as they learned from their work in the mortgage industry, which, in many cases, runs the risk of being slanted in favor of the very same lending industry that the borrowers they represent are seeking protection from.
Ultimately, the borrower has final say of who they want to hire to avoid foreclosure. No what service the borrower decides on, they should remember to do their homework and make sure they are giving their hard earned money to a legitimate agency with a proven track record and an honest desire to help. This information can be found out through conducting basic Internet searches, talking to past clients, reviewing any complaints filed with state or private regulatory agencies, etc. Borrowers should never jump blindly into an agreement with a third party company they know nothing about…especially when that company is being hired to save a home.Post Tags: Mortgage loan modification brokers