Never send money to a company that isn't a law firm!

There are many companies in the Loan Modification Business that claim to be an attorney based firm, so how can you really be sure? The answer is very simple and straightforward. Follow the money! Who is the check or money order made out to and what is the name of the vendor on the credit card authorization form? If a company is truly a law firm then money will go directly to the attorney or law firm itself and you will be required to sign a client attorney retainer agreement. If you're ever asked to send money directly to "ABC Modification Company" you should take your business elsewhere as they're not truly an attorney. In fact, in many states, NON-Attorney modification companies cannot charge upfront payments by law.

If they don't complete a financial worksheet with you HANG-UP!

A financial worksheet, which shows what monies you have going out versus what's coming in each and every month, is an integral part of the modification process and really dictates whether or not your bank will entertain a modification. If a company does not complete one with you they are clearly only concerned with getting money from you and aren't overly concerned with you achieving a successful modification.

You shouldn't have to pay for Zero results!

A successful loan modification is an extremely labor intense, time-consuming process. That being said if done properly, with a professional, thorough forensic review of your loan documents, it can literally save you tens of thousands of dollars over the life of your mortgage, not to mention outright saving your home in extreme cases. However, modifications are done on a case by case basis and programs vary by lender. Therefore, if a company does not offer a full money back guarantee with no questions asked if a viable solution isn't provided, it's not worth the risk. Go Elsewhere!

If a company guarantees you a specific interest rate reduction and / or amount of principal reduction they're lying!

As mentioned before a loan modification is not a standardized, boiler plate thing. Your financial worksheet, your geographic location, certainly your lender and whether or not lender violations are found in your loan documents are all variables that greatly affect the terms of your modification. So if someone is selling you on a specific interest rate or a specific amount of principal reduction they are doing exactly that, SELLING! Again, do yourself a favor and take your business elsewhere.