Should you have to pay a company a monthly fee for a home modificationprogram?

I was told to pay $1000 for t3 months while working with the mortgage company for a loan modification.

Asked on September 18, 2016 under Real Estate Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

What company are you paying the fee to? If not to the mortgage company, who are you paying it to, and why? For them to negotiate with the lender? There is no need for anyone else to negotiate for you--speak to the lender yourself and save your money. No third party company can guaranty favorable results, since they are not the lender and don't control what the lender does.
Or are you paying to the lender--if so, why? Is it the application fee for the modifiction? If so, it is VERY high, and if they are not guarantying you a favorable modification in exchange for the fee, you are throwing your money away. You'd be better off using that money to pay down your loan principal or make your monthly payments.


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