How Do I Know If A Loan Modification Service Is Legitimate?

There are a number of steps to take before determining whether a loan modification service is legitimate. First and foremost, check with the local Better Business Bureau (BBC). If the company has had any negative incidents with its customers, the BBC will have a record of it for the community. Another reference source to check locally would be the Chamber of Commerce. You’re looking for any negative reports or issues that may have been reported in the past for the company you’re considering. Also determine the length of time that the entity has been engaged in the act of securing loan modifications.

A second step to take in checking the authenticity of a loan mod service is to ask for its actual track record with previous loan submissions. A legitimate company will be more than willing to share its success stories with you. Ask to know what their success ratio has been to date. You should be looking for a success ratio greater than 90%. A bona fide service outfit will have at least a 90% approval record for their clients which will indicate its proficiency in the modification process, and its ability to work with lending institutions.

Ask for referrals. A legitimate business thrives on hearing from its satisfied clientele. Have the company refer you to at least three satisfied customers. Then, call those customers. Ask them how their modification process was handled from beginning to end. Did they have any issues at any given time? Did they relate well to the personnel handling their submission? Did the company behave professionally at all times? Were phone calls and communications responded to efficiently? It is important to have confidence that your file will be given the necessary priority throughout the process.

Finally, what are the fees to be charged for this service? Do not pay any "up-front" fees. A legitimate processing service will accept its fees only upon successful approval of the modification at completion.