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Loan Modification Rip-Offs

By
Real Estate Agent with Keller Williams

With the slow down in the housing market and with many homeowners facing possible foreclosure, it is unspeakable that there are many rip-off artist taking advantage of these struggling home owners.  

We are Certified Foreclosure Prevention Specialists and work with many lenders to get a loan modification or a forbearance agreement for their clients facing foreclosure. Lenders do not want to foreclose on a property because of the expense to the lender. For this work, the lender pays us less than 150 dollars. It costs the client nothing. The reward is in seeing the expression on the client's face when they find out they may not lose their home.  

So where is the rip-off? One of many cases just occurred. We went to a client's home at the request of the lender. The homeowner at first did not think he needed our assistance. Prior to our arrival, the homeowner had gone to the internet to find a company that could assist him with his problems. After doing his due diligences, he met with one company and signed a contract for 1500 dollars to do the same work we were going to do, but we were working for his lender and our work would not cost him anything. The home owner said many of the companies he called wanted as much as 3500 dollars. These charges are a rip-off for 2 to 3 hours of work. In fact, the homeowner can do the same work themselves for free, if they know what information their lender requires to start the loan modification process.  

As a side light, after we worked with this particular client and called the lender (about 2 hours of work), he decided to stop payment on his check to the rip-off company.    

Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Kathy * Jim - are you willing to share what you know?

Oct 22, 2008 09:29 AM