Loan Modification, Is It Legitimate or Not

By
Real Estate Agent with Coldwell Banker Los Gatos

DISCLAIMER: The information contained in this blog is my personal opinion. This information can not be considered as legal or financial advice nor should it be relied upon as legal or financial advice.

Can somebody tell me if they have heard of a company called PRG System in Chula Vista CA.  Apparently it is run by a guy named Pable Rodolfo Gonzales who has been an investor for over thirty years (according to the website).

Realtors are bringing their clients and leads to this company promising to get their equity back even if they are three to six months late on payments. Realtors apparently get paid for these referrals (this is heresay).

This company charges clients aprox $1,000 to try and perform a "short pay." Apparently the PRG company has investors who buy the property from the struggling homeowner at 65% of the "fair market value" and then the investors either sell it back to the homeowner at a 10% premium or the homeowner can sell it to anyone at the new lower price plus the 10% premium to the investors.

They promise Instant Equity For The Struggling Desperate Homeowner Who's Behind On Their Payments And Living In A Home That Has Depreciated Big Time!

To see the video cut and paste this link to your browser: http://prgsystem.com/index.php?option=com_content&view=article&id=59&Itemid=68

DISCLAIMER: The information contained in this blog is my personal opinion. This information can not be considered as legal or financial advice nor should it be relied upon as legal or financial advice.

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Topic:
Mortgage / Finance
Location:
California Santa Clara County San Jose
Tags:
scam
san jose
loan modification
short pay off

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Rainer
35,461
Tony Bolodar
NEXA Mortgage - Alameda, CA
Residential Mortgage Loan Originator, #1320876

First I have to ask, Are they doing a short sale with the original lender?  If so, they are not selling it back to the owner as they will not be able to obtain financing.  Short sales I am afraid are looked at by FHA and lenders of all types as foreclosures.  Therefore the people would not qualify to purchase the home back.  They could not get a mortgage.  Thus the investor has a home he bought for 65% and may lease it back to them.  But he is now earning the equity.

Sounds fishy to me.  The old saying, if it sounds too good to be true.....it probably is.

 

Jan 31, 2009 04:34 PM #1
Rainer
19,567
Ted Schmidt
Leadsnet - Mortgage Leads Network - Anaheim Hills, CA

The topic asks if loan modificaiton is legitimate, I can say with out a doubt yes it is.  Your post does not address loan modification, which is a permanent change in the terms of the original note.

Jan 31, 2009 06:18 PM #2
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2,739,883
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I'm sure they will do well.  There's an uninformed consumer born every minute.

I'd contact the state's attorney and see if there are any complaints.  This advertisement is full of misstatements.

 

Jan 31, 2009 11:02 PM #3
Rainer
14,022
Dan Pizano
Coldwell Banker Los Gatos - San Jose, CA
San Jose Realtor Real Estate Agent

Thanks for checking the link and your comments thus far.  I appreciate everyones time and the AR network of professionals.

Feb 01, 2009 01:41 PM #4
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Rainer
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Dan Pizano

San Jose Realtor Real Estate Agent
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