Recently I have a client who was referred by her friend to a loan modification company that already modified her friend's loan. My client is trying to modify her option arm loan of $460,000. The modification company charges a flat fee of $4500 and requests $1500 up front.
Reading the contract of the loan modification company, it states:
"Service provided by the company are not guaranteed,
no particular result has been promised,
no prediction of result has been made,
other than that the company will modify or restructure the current mortgage to some unspecified degree.
No promise or guarantee implied or directly made by the independent contractor is the company obligated to maintain."
Any homeowner who is interested in modify the loan can call and talk to the lender's "Loss Mitigation" department and work with the lender directly FREE OF CHARGE!
From my current experience, lenders are very open and willing to work with homeowners to make sure that homeownser keeps the property. They already learned it the hard way knowing that they stand to suffer more lost if they take the property back. They know if they help the distressed owners now, they are helping themselves in return.
When you talk to the lender's Loss Mitigation department, just tell them the truth about your financial situation and they will help you determine your eligibility and guide you through the loan modification process.
It really does not make any sense for distress owners to pay a large sum of money to a loan modification company. Owners are better off keeping the money in their pockets and work with the friendly lenders themselves.
The more we talk about it, the more homeowners will be aware of their options and not fall into this type of loan scam.
Comments(16)