I wanted to put this out there to the Active Rain community to see if we have another unregulated industry taking the already beaten down consumer to the cleaners along the path of foreclosure!-- The Loan Modifications Scam or Savior?
This is a big buzz word in the real estate industry. We have many folks facing upside down loans with equities gone and loan amounts exceeding current values by hundreds of thousands of dollars. They are scared to death of loosign their homes and are being preyed upon by Loan Modifiers who collect "up-front" fees of thousands of dollars for a promise of "Loan Modification. Are these folks for real? I know to collect "upfront" fees before a service is provided you must go through a registration process with the Department of Real Estate (california). So far only 55 companies have done this. But I googled Loan Modification and got over 200,000 entries coming up!!
Can anyone reccomend solid Loan Modification companies? Don't hawk your company but give me results! I just see this as a segment of our population at risk of scams after being scamed by "warm-body" lenders who had no problem representing them in the sale as an agent and then also as a lender collecting more fees on the loan end than on the commission side! Are these the same people?
I heard one report stating 25% of the loans which underwent modification went BACK into default. The source in the article said this was a good thing!! You lenders out there--how long could you originate loans if 1 in 4 defaulted!!?? So how does one tell the good from the bad? Simple question--complex issue. Would appreciate the Active Rain communities help on this one. Thanks!