Long Island loan modification is the act of requesting from the bank/lender, to add, alter, remove, substantial terms and conditions in a contract of loan. For purposes of this article, we will assume that this refers to a housing loan. What exactly do lawyers do that make their service more expensive, than say, internet based providers who offer to negotiate your loan for you, usually at half the price, or eBooks that cost $10 to $100?
Loan Document Audit
Lawyers will require you to provide a copy of your loan documents as a basis for your loan modification. Should you not have any, they will get a copy from the bank or lender. They will then perform a thorough auditing of the loan documents and cross reference the same with your financial records. Lawyers will look for gaps in the law. Anything that the bank/lender might have breached i.e. excessive loan costs, lack of full disclosure, an increase of more than 10% from initial to final offer, etc.
File a Case and Reply in Court
Granted, non law firms also perform an audit for loan modification. The problem is, they lack the necessary knowledge to make a full assessment. Even assuming they do find any lapses in the law; they lack the necessary license to file a suit. If they insist on contesting the legality of the loan documents, then banks/lenders are sure to elevate the matter. Can third party providers promise to file a reply in court? Do they have the necessary knowledge to contest legal technicalities that banks/lenders will raise regarding your Long Island loan modification? No they can’t and they won’t.
Even if they do forward your loan modification to a lawyer or firm, no lawyer will rely on the findings of a non lawyer. They will insist on making another audit. This means more time is wasted, and you just paid for an audit 2x. This is only natural because no lawyer or firm will risk their good standing and their license on the say so of a third person.
Another reason why it is better to consult with attorneys for your Long Island loan modification is because they are bound by their profession to keep everything they know 100% confidential. The penalty for breaching confidentiality is suspension, disbarment and/or hefty fines. It is only logical that no lawyer will risk their good standing for a grand or two. This is especially because lawyers and law firms have well established contact details and office locations.
On the other hand, some internet based Long Island loan modification providers have small operations within the state, and outsource some, if not all of the work. This means your confidential, personal and financial information i.e. social security number, full name, address, contact number, credit card information, bank statements, etc. will be seen and recorded in several venues. This increases the likelihood that the same will be leaked, making you susceptible to identity theft and credit card fraud.
Case in point, several years ago, there was this company that had the audacity to call themselves Federal Housing Aid (FHA). This was planned to simulate authority. They purported to help distressed home owners, save their homes by filing for loan modification. They utilized a home address within a certain US state, as their business address. But 99% of the operation was outsourced in Asia. The company was a scam. Their CEO was prosecuted, tried and found guilty of multiple counts of fraud. The only thing they did was to send out a pro forma (fill in the blanks) request for loan modification. Those who got approved could have done so themselves. Those who got disapproved could have been better off hiring a law firm that can provide alternative remedies.
In case your Long Island Loan Modification fails, a law firm can provide you with other options. More importantly, these options can be utilized as soon as possible. This is because, for some individuals, the denial of a loan modification is tantamount to eviction.