As the situation in the American Real Estate market becomes worse and worse things are getting better and better for loan modification firms. Such is the case that they are expanding in a dot-com fashion throughout the States. No doubt this trend will follow in other developed countries soon.
The growth is so large that newspapers are even commenting on the effect these companies are having on the commercial real estate markets of cities when they snatch up commercial lots for their offices. Some are even commenting that these companies are creating a positive force of their own in lifting the real estate economy.
That is one view. Another not so flattering view see these loan modification firms as vultures that further weaken the economy taking advantage of the “victims” of the current recession. Your views on this issue are probably flavoured by your view on the situation of those affected by the credit crisis.
Financialization and Economic Development – Loan modification firms
There is the “serves them right, they shouldn’t have been greedy and spend over and above their means” on one side and the “the capitalist economy actually creates an unstoppable spending force that unscrupulous bankers and stockbrokers fuel to insanity and we need to protect the consumers from them”.
I personally lean to the “you’re responsible for your actions my friend, don’t play the victim” and I have also lost a house because of the u-turn the economy made in Spain. I made a mistake, bought at the peak and paid the consequences, I don’t expect the government to bail me out even if it is my only home.
However, there is a point that a sudden growth in companies whose sole purpose is to modify mortgages and loans for people who are about to default on their payments does kind of smell fishy.
How Mortgage Fraud Helped Facilitate – Loan modification firms
Alas, what long term effect can an increase in occupation of commercial office space have in the real estate. However, these firms do carry out the job of explaining to homeowners what they can do to save their Loan modification firms, their home and their credit rating. No matter how bad you feel your situation is there is a lot you can do.
Banks and finance companies are aware of how difficult times are and what is more, they understand that they are more likely to save their investment if they work with you than if you short sell the house and declare bankruptcy.
Loan modification firms are here to stay, they have dug their teeth into a niche of the mortgage industry and are not going to let go any time soon. The only fly in their ointment would be if large lending banks started doing in-house loan modification programs they could not compete with.
If you are in a bad situation with your mortgage, Loan modification firms talk with your lender, consult a professional, preferably one that is not likely to make money from you following his advice and take practical steps to improve your situation.