Loan modification companies act as a go-between for lenders and borrowers, with regards to mortgage loans specifically, in a situation where the borrower is unable to pay back the loan on approved installments. The result of loan modification is an extension of the term of the loan, a lower interest rate, and a different type of loan or a combination of these.
Most loan modification companies are small, capitalist firms that provide important services requested by banks, even if they are not fully developed in-house! Loan modification companies are also referred to as ‘debt settlement’ or ‘debt consolidation’ companies. They assess a borrower’s capability to pay by analyzing wage statements, bank accounts and tax returns, investment accounts, etc. Next, they prepare proposals for restructuring the mortgage terms in manner that will improve the likelihood of repayment to the lending institutions. Loan modification companies can also work for borrowers to help negotiate on their behalf. With the high costs involved in foreclosure, lenders offer concessions to troubled borrowers.
Becoming an affiliate
- Start with looking up the companies on the Better Business Bureau (BBB) to check if the company has any negative ratings or claims while you look for a good product to sell. Watch out for companies running loan modification scams on the market. You definitely don’t need to affiliate yourself with a poorly established loan modification company. Also, keep away from ‘virtual’ companies with no brick-and-mortar presence or companies that charge a huge upfront fee.
- Register with an online forum to interact with other affiliates on various programs. Online forums help get more information on any affiliate system before joining. Specifically, find out what percentage of the profits are generated per sale, what the sell rate is, what the minimum balance for a payout is and how often the program pays affiliates, etc. The better the company product, the better organized their affiliate program; review features of affiliate programs to get a better idea.
- Remember there are no costs related to signing up to be an affiliate for a loan modification company; hence register with an affiliate network. A single registration with affiliate networks helps you connect with various loan modification companies as affiliate networks offer you many affiliate programs! You will also have the benefit to be able to access profit reports for various affiliate programs. Once you register, follow instructions to manage your own link.
- Commission Junction (CJ) specializes in physical services and products while Clickbank specializes in digital products.
- Register outside the affiliate network and get a unique seller ID for a loan modification company. The ID helps track your affiliate sales as most affiliate programs pay you within 10 days of a sale or once a month.