I say stay clear of loan mod companies, it is usually good money down the drain!! People need to call their lender to get their loan mod paperwork, fill it out and get it back to them with one HUGE caveat!!
If you do not have the income to pay a monthly payment (use your mortgage amount at 3% interest over 30 years to see a possible lower payment), you will NOT GET A LOAN MOD so look at using the short sale vehicle to get out and move on!
It is absolutely criminal in this case that these people paid for 6 months thinking that a solution had been found, only to be foreclosed upon!
YET ANOTHER HEART-BREAKING INDYMAC/ONE WEST BANK STORY
I ran across an article today regarding IndyMac (now One West Bank) that came out in August/2009. Basically, it was one of those "Pound your chest and tell the world how great you are" type of articles. To read the article, CLICK HERE.
Yesterday, I received the following email from a very distressed homeowner who happened to read a recent blog post that I wrote here on Active Rain. They have given me permission to post it on AR. Here is the email, word for word...
Dear Sir,While browsing in hope of finding any solution to our problem with Indy Mac, We found your email address and your request for information about any negative experiences with Indy Mac after 3/20/09.this is our case:We hired a loan modification company and they submitted our request for loan modification in our behalf back in March 09. At that time they gave us a repayment plan for six months with a balloon payment at the end of said term.Last month we were informed by this loan modification company that they had submitted an other request for modification under the Home Affordable Modification Program and that Indy Mac was reviewing our file for approval, but we should continue making our already established payments in a timely manner, while we were waiting for their approval.Just today I received a letter in the mail dated September 29, 2009, ( We are including a copy of said letter herein) telling us that they were very sorry but we didn't qualified for the program, but encouraging us to call them because they could help us to look for other possible solutions.So we went ahead and call then, just to find out our home will be sold in public auction on next Monday October 5, 2009 and that we don't have the time to do absolutely anything to save our home.Do you think this is fair? I think that since March when we submitted our paper work they had ample time to let us know so we could find a different way to save our home, instead of telling us 5 days before the sale. We have live in this house for the past 37 years can you imaging at this time in the sunset of our lives having to start all over again and moving to a different place? How cruel of their part to send us a letter at this point giving us false promises that they are not willing to deliver.Please see if you know something that we don't in order to save our home in such of short notice.Please Help us if you can, or know someone that can.Thank you very much, XXX and XXXXXXanytime, day night cell ph. # XXX-XXX-XXXXThe letter that they received from IndyMac/OneWest told them that their loan modification had been denied, and asked them to call their office to discuss "other options to foreclosure". When they called, they were informed that their home of 37 years was to be auctioned in 5 days. I have already sent this information to my contacts at IndyMac, hoping they will do something to postpone the foreclosure so that these folks can explore their other options.Obviously, this is a heart-breaking story, but it is a story that is playing out daily all across this country. I'm so sick of lenders standing up in front of our government leaders and the cameras, telling us how much they want to help the American People, while at the same time they are kicking them to the street behind closed doors.The only way to stop it is to spread the word!