Is an attorney going to be more successful than a homeowner in obtaining a good loan modification? That really depends. Any firm that quotes you a low flat fee and gives you a guarantee that they can definitely obtain of a good loan mod for should be looked on with great suspicion.

In 2009 this office was instrumental in helping to shut down shyster attorney Christian Dillon in California for broad abuse of clients seeking to obtain loan modifications. Dillon, and Law Group USMAC, charged $2500 and more to clients who could not afford their mortgages, with the promise of obtaining a loan modification. We had a client who had retained that firm when she was current on her mortgage. She was advised to stop paying the mortgage and did so. A few months later, with no loan modification in sight, she was put into foreclosure by her servicer, then was dropped by Dillon’s firm.

We wrote to the California and Oregon State Attorney Generals regarding this situation. We also were able to get our client’s money back, along with an additional sum by way of settlement. We also got her current with her servicer and were able to save her home.

Christopher Schwindt, an attorney who was licensed in Oregon and Washington was suspended from the practice of law for two years in Washington after an investigation into his loan modification business unearthed unethical practices. He also was disciplined by the Oregon State Bar Association on the same charges. Click here for a link to an article in The Columbian published on December 17, 2012.

Other Law firms and paralegal firms have been shut down for the same type of scam tactics. So investigate closely before you hire an outsider to obtain a loan modification for you.

There are a number of non-profits that will work to help you for free or little money. There are also reputable attorneys who will do excellent work to help you obtain a good loan modification, but they charge for their work, and will never guarantee a result– because the outcome is unknown until the work is done.