The home loan lenders who created the biggest consumer rip-off of all time are now running scared because homeowners have the option of getting a profession expert loan modification company to represent them to get a better modification result then the homeowner could get by themself.
The lenders are seeding the news media, who they pay millions of advertising dollars to, with an offer to do free loan modification. They are also spinning 'consumer' slanted news articles touting the perils of hiring an expert loan modification company to help the homeowner.
It goes something like this:
"If you are having trouble making your 'overpriced' mortgage payment, you might be contacted by people who want to help you. But it could be a scam." Then they send the homeowner a 'bait letter' pitching that the homeowner MIGHT qualify for super low rates, but they have to come into the lender ALONE (no representation). Then when the homeowner gives up ALL of their income/expense/hardship info, the lender takes full advantage to write the loan mod in the lenders total favor. The homeowner could have had a much better, EXPERT NEGOTIATED loan mod, but was scared away from getting expert help.
The public relations departments of these giant lenders spin the fear of 'scam' to the homeowner. These are the same people who scammed America with bogus overpriced home appraisals, huge fat loans and low tickler rates, to seduce the homeowner into thinking they won the LOTTO, except they put them in a loan they could not afford. The lenders are also known as Bankster's!
Now, they want to 'scare' the homeowner and loan modification companies from coming together to 'cram down' (reduce) the loan which will take money (they think) away from the lender.
But, if the homeowner can't make a house payment, there is no money for the lender, duh! Mr. Lender how about 50% of something vs 100% of nothing. But, the lender doesn't want to believe it. They think that like 'magic' the homeowner is going to find some new money. They even have convinced the local and state gov's of this illusion, that they will lose tax revenue if 'cram downs' are given. The homeowner has spoken, folks. Twelve million homeowners have stopped making their house payment!
"steer clear of anyone who:"
1. "Guarantees to stop foreclosure."
No one can guarantee this as the lender has the last call. Only an attorney loan modification company can put the kind of pressure on the lender to get the homeowner good results. Any top notch attorney loan mod company should be showing you what results they are getting with the lender at this time.
2. "Collects upfront fees."
This is a great public relations ploy to keep modification companies from staying in business. This is exactly the lenders tactics. Come on, any business needs to have at least a down payment and payment plan from their clients to survive.
When you bought your house the lender made you put a 'down payment' on your house, then took all their fees (i.E. $20,000+) before you got to move into your house, didn't they?
The lender wants the modification company to do work without a down payment from a homeowner with bad credit. Do you think the lender would do work like this? We know they wouldn't.
A modification fee of $3,000 is small when a professional loan modification company can save you i.e. $200,000 on the life of your loan, and/or cut your house payment in half.
Remember, the lender charged you 1%-3% (points) on your loan and the realtor took 6% of the sale price; but they say that was ok!
Hiring a loan modification company is like hiring a 'CPA' to do your taxes to get you the best results. Find the best attorney loan modification company that has the expert experience with your lender to get the best results for your family. How logical is that?
3-"asks to be paid by wire or cashiers check."
No wire payment but, a cashiers check for a 1/3 or 1/2 down payment to start the job is possible. Your should be dealing only with a attorney loan modification company with a verifiable business address. Attorney loan mod companies usually give a free initial review of your case and then upon accepting your case will collect a retainer. Attorney mod companies DO NOT HAVE TO BE REGISTERED WITH THE DEPT. of REAL ESTATE. They are policed by the state bar. When considering a attorney mod company always ask for and check their state bar number.
4-"instructs you not to contact your lender."
Another scare tactic. This is to get the homeowner to give up to the lender, important modification negotiation information for the lenders advantage.
Once you enter into a loan modification agreement with an modification company, your lender should contact you to affirm this within 20 days. You should only tell the lender that you have retained the loan mod company and give the lender the company name, address and phone number. The lender should then handle the modification with your loan mod company.
Almost all lenders will contact a homeowner who has retained an attorney loan modification company, to extract info from the homeowner to use against the homeowner in the modification. The lender is only thinking about helping themselves.
***In America, it is the homeowner's right to hire anyone they choose to help them.***
The lender does not want the homeowner to have any advantage in a loan modification.
A good loan mod company works with these lenders every day and knows what it takes to get the results and will get a better result than the homeowner could get.
For loan modification, a homeowner should hire the best lawyer based loan modification company they can find.
The company should have:
1- A verifiable business address. A walk-in office.
2- Good past results history
3- Past customer contacts & testimonials
4- Good results with your particular lender
5- A work contract and refund policy
6- Realistic projections
7- Predatory loan analysis
Any good attorney loan mod company will 1st- carefully check and review your case and then 2-decide if they want to take you on as a successful client because they know through experience what lenders are good to do loan mods and what lenders fight loan mods. A good attorney loan mod company is not going to take on a dead deal. He wants to get the best results for you as quickly as possible.
I paid, a few years ago, a workers comp attorney 20% of my settlement because he was an expert in this work. I could have tried to negotiate with the insurance company myself BUT why take the chance. I wanted and got the best results with this attorney.
Now understand the loan modification world is not easy. Trying to 'cram down' your mortgage, is like taking a bone away from your neighbor's dog on a very HOT day! The lenders are fighting this all the way. State and local gov's are fighting it because it means lower tax collections (payroll, property, income, sales).
*You need to be represented by an attorney loan modification company that can put pressure on your lender and get you the best possible results. A huge number of loans (60% est.) were predatory on the consumer. If your loan is one of them and your loan mod company can prove it, then your lender will get real cooperative with your modification company real quick as the loan can be deemed invalid! You might even be entitled to damage compensation from the lender.
The lenders are dragging their feet on modification as much as possible. They are trying to get as much cash out of the homeowner as possible and keep the interest as high as possible in the loan. This why they do not want a homeowner to get representation. They want to take advantage of the homeowner as much as possible.
The lender does not care about the homeowner and making the national economic situation better. The lender is greedy and cold-blooded!
I have had a homeowner, 'BLIND' on SSI dis., go to his lender 1st for help, only to be told he doesn't qualify for a hardship.
I have had senior's who's fixed income is $1,600 with a house payment of $1,500, go to their lender for help only to be told they don't qualify.
Check around, the lenders are not trying to help the homeowner, at all.
***Watch the ABC Nightline Investigation special 1/21/09 with Congresswoman Maxine Waters attempting to get a loan modification from 3 different lenders. She gets rejected the whole time.
***Watch it at: YouTube.com Then enter search of: 'nightline maxine'
Now, these client's loan payments didn't start off this high. The lender put them into a low ARM, that the expert lender knew was going to adjust up, but just sold the homeowner into the illusion to not worry about the payment increase because they could refi forever as their home value would just keep increasing.
The lenders got this to work for while by squeezing (fraud) the appraisers for higher and higher appraisals to get fatter and fatter loans to sell to more and more sucker investors around the world, until...the loans readjusted to an impossible payment for the homeowner to make.
*It was a total illusion for the expert lender and everyone else, to think all of these homeowner's income would increase to cover the new double-triple house payment.
The expert lenders knew this was bad to begin with, that is why they sold these worthless loans. They were blind with 'greed.'
The lenders created the biggest real estate scam of all time, took billion$ of commissions and now are so arrogant that they are asking the federal gov't for help because they are a victim.
The lenders played on America's POV that the 'LOTTO' was the answer to their prayers and the lenders gave the American homeowner a 'LOTTO' win with a never ending fake home equity increase.
The homeowner was led to believe by the expert lender (with fraud appraisals) that he could always refinance and get more cash (LOTTO win) because home values would rise higher and higher, forever! What a banker scam! Everybody was getting their commission on this game of musical chairs; bankers, finance, gov, media ad $!
Now, the music has stopped and the bankers, finance,gov, media ad$, don't have a chair!
What do we do? Answer? Loan modification.
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