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:
“Rescue rip-offs”
“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!
Continuing,
“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.
Article Source: http://EzineArticles.com/?expert=Al_Diro .
