Loan Modification Fraud 
A client of mine just received a letter marked Confidential in the mail from a Law Group. The letter has no company letterhead or logo and the company name was in small print at the bottom of the letter. The letter indicated his first mortgage originally funded by "his bank" can be restructured and based on public records and information obtained through Fannie Mae that he is in a severely declining market in terms of his home's value. It boldly states: "We have reviewed your property information and have determined that you are eligible to modify the current terms of your existing mortgage, which could allow you to REDUCE your monthly payment by 30% to 60%. No Equity is required, No minimum credit scores, Late payments are not a problem. No appraisal is needed and this is a guaranteed fixed rate loan". It then gives the following example of a successful previous client modification.
Current Mortgage Balance $450,000 - Modified Mortgage Balance $260,100
Current Property Value $289,000
Current Monthly Payment $2,965 - Modified Monthly Payment $1,408.
At the end of the letter it states: WE CAN HELP SAVE YOUR HOME - Expires 30 days from receite of this notice. Yes...the word receipt is incorrectly spelled in the letter!
THE ONLY COMPANY THAT CAN MODIFY YOUR LOAN IS YOUR LENDER!
BE CAREFUL AND WISE...LOAN MODIFICATION FRAUD IS RAMPANT IN CALIFORNIA!
INFORMATION FOR HOMEOWNERS FACING FORECLOSURE...
If you are having trouble paying your mortgage or facing a rate adjustment, get help now! Contact your lender or a credit manager. Call 1.888.995.HOPE for a HUD approved counselor or visit Hopenow.com. Below are some helpful links for counseling information.
NeighborWorks America: http://www.nw.org/network/home.asp
Homeownership Preservation Foundation: http://www.995hope.org/
MyMoneyManagement: www.MyMoneyManagement.net
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