This is an older article I’ve had saved from the San Francisco Chronicle-but still very timely.
With the economy still on the long, slow road in recovery (I wonder if there is a 12 step program for this?), many homeowners are still considering their options when it comes to loan modifications, short sales and foreclosures. The SF Chronicle article reiterates the need to be cautious and ask lots of questions as it relates to loan modification considerations.
Of course the double whammy is that by the time you get to the point where you have to make the decision, there isn’t much money to pay professionals to ask questions. Unfortunately, that’s exactly what you need to do. Certainly, talk to your accountant, a real estate attorney, your favorite mortgage broker and your real estate agent to get a sense of what questions each of them would ask, your future goals and how a modification may fit into that plan. Before you spend $1,500-2,000 for someone claiming they can do a modification for you, talk to all the folks I listed above. For under $1,000, you should get all the info you need to proceed.