This is the final installment in a three part series about free loan modifications. You can read Part 1: Free Loan Modifications: Hope Now and Part 2: Free Loan Modifications: NACA Know How?
In Brief:
While they certainly aren't solving our country's financial woes, Hope Now, NACA, and other free loan modification organizations have put a small dent in the amount of foreclosures in the United States. Thousands of homeowners have been helped thanks to the counseling services, seminars, and informational campaigns that these organizations have provided.
There are three main drawbacks to free loan modification assistance programs such as Hope Now and NACA.
One of the biggest complaints about NACA and Hope Now is that they don't always follow completely through with offering assistance to homeowners. Many homeowners have been disappointed because they haven't received the help they were promised, or because representatives from these organizations have left them hanging.
A common complaint is that homeowners will come to a NACA or Hope Now event and will even work with counselors and bank representatives to find a loan modification solution, but will then never hear back from anyone. While this is unacceptable and completely frustrating to a homeowner, it also isn't too surprising, considering the size of these organizations and the scope of the foreclosure problem.
Many people think that free loan modification organizations provide the exact same help as foreclosure defense law firms. Oftentimes, free organizations like NACA operate under the guise of offering help for any and every American homeowner, but then shy away from helping with cases that can't be solved with their standard one-size-fits-all operating procedure. This is because it's simply not cost-effective for these organizations to offer highly individualized help to each client, so Hope Now, NACA, and other free assistance organizations generally offer a one-size-fits-all solution. This would work well if everyone's financial situation was exactly the same, but they're not. This is why homeowners receive better loan modifications from a dedicated foreclosure defense law firm that will consider every client case-by-case, instead of on a one-size basis.
As soon as a client decides to retain (hire) a foreclosure defense law firm, the law firm will take the time to analyze each client's individual file, then will present the client with the best options for foreclosure defense. Some law firms also offer loan modification as an ancillary service to foreclosure defense, and will negotiate with a client's lender to create the best possible loan modification. Even though they aren't free like Hope Now or Naca, these firms do offer an affordable pay structure for homeowners.
Hope Now Alliance, NACA, and many of the other top free loan modification assistance programs are backed by the big banks, which means one thing for homeowners: the loan modifications they provide are in favor of the banks, not the homeowners. This is why the lenders themselves often recommend that troubled homeowners enroll in free loan modification programs. On the other hand, when a foreclosure defense law firm sits at the negotiation table with a bank, both the client and the bank are able to negotiate on equal terms. Foreclosure defense law firms have been known to obtain incredible loan modifications for homeowners, thanks to this bargaining power.
Many people take the advice of their friends, their realtors, and even their lenders and turn to free loan modification assistance programs for help, thinking that the help they will receive will be no better than what they'll get from a foreclosure defense law firm. Don't fall into this trap! While a free loan modification assistance program may be able to help you get a loan modification, they won't be able to help you the way a foreclosure defense law firm can. The difference between free programs and foreclosure defense lawyers may mean the difference between paying tens of thousands extra on your mortgage. It's highly recommended that you consult with a foreclosure defense attorney before working with any "free" assistance program.