Loan Modifications Are A Joke

Posted by yourmortgageplanner in Credit Crisis TARP, Financial Awareness, One Step Ahead on 01 27th, 2009 | 8 responses

Caveat emptor…  the majority of Loan Mod companies in existence are not legit.  I have not found one that can guarantee or promise a Mod.  They have no problem overloading individuals with statistics, such as 97% response rate.  Guess what, by calling your lender and talking to a customer service rep, you just had a 100% response rate.  The majority of these outfits charge upfront fees ranging from $500 – $2,700 and are non refundable if they have a response.

Loan Mod companies can only guarantee to cash YOUR check!
The result ultimately resides with your current lender and there investor. It wouldn’t matter if you had Johnnie L. Cochran working your loan mod. If the lender is willing to work with you and write down, fix or modify terms it is ultimately the lenders decision, not pressure from some Loan Mod operation.  An attorney is not going to sway them, unless there was fraudulent activity on the loan initially, if that is the case why did (you) the borrower not catch it at closing, a contract was signed and your signature acknowledged and confirmed the legitimacy.

If you really want to attempt a Loan Mod, do it yourself.  Here is a step by step list to get you started.

  • Call your lender and ask to speak with the Loss Mitigation department. Explain your current situation. At this point they will ask you to complete a Hardship review.
  • Gather all your income documentation (just like you were applying for a new loan).
  • Fax back to Loss Mitigation.
  • Call back every day to confirm receipt and check on status. (This takes about 15 min each day).
  • Within 3-6 weeks you will have your response.

Unless the value of your time exceeds the upfront Loan Mod fees $500 – $2,700. Hire a Loan Mod company, dont say I didn’t warn you.

Media Types on the same note:
Fraud at Your Front Door – Carlo Dellaverson
Realty Check: Home Loan Scams

[where: 98109] [where: 85012]

Reblog this post [with Zemanta]

Related posts:

  1. 2010 FHA Loan Limits Released FHA home loans are federal assistance mortgages made by lenders,...
  2. FHA Streamline Refinance Update FHA Streamline Refinance Update...
  3. The New Good Faith Estimate (GFE) For Mortgages The New Good Faith Estimate (GFE) For Mortgages...
  4. Mandatory Loan Fees Keep Borrowers From Getting Their Absolute Lowest Rate Conforming mortgage rates may be posting all-time lows this week,...

8 Comments »

  1. avatar comment-top

    You speak the truth William!

    To add to this…be sure you understand if the modification is a permanent or temporary change to your loan terms. The bank may suggest they put you in an adjustable rate mortgage and will revist terms with you in a year.

    I thought there were 3 choices: HARDSHIP ADJUSTMENT (more paperwork), LOAN MODIFICATION or a PORTFOLIO REFINANCE (where you the bank refi’s you to keep your business).
    http://www.ArizonaHomeTalk.com

    comment-bottom
  2. avatar comment-top

    [...] is the original post: Loan Modifications Are A Joke | Your Mortgage Planner 2.0 Blog Read [...]

    comment-bottom
  3. avatar comment-top

    [...]  Loan Modifications Are A Joke | Your Mortgage Planner 2.0 BlogPosted by yourmortgageplanner via StumbleUpon   [...]

    comment-bottom
  4. avatar comment-top

    [...] modifications are a joke and I want to thank William Doom for emphatically say so on his post.  He provides a five step process to guide consumers seeking to do a loan modification. The best [...]

    comment-bottom
  5. avatar comment-top

    [...] modifications are a joke and I want to thank William Doom for emphatically say so on his post.  He provides a five step process to guide consumers seeking to do a loan modification. The best [...]

    comment-bottom
  6. avatar comment-top

    Hi…
    I want to thank William Doom for emphatically say so on his post. He provides a five step process to guide consumers seeking to do a loan modification. The best,Loan Modifications Are A Joke.

    comment-bottom
  7. avatar comment-top

    this Loan Modifications Are A Joke | Your Mortgage Planner 2.0 Blog is great.
    Have a look at this too jokesmsquote.com

    comment-bottom
  8. avatar comment-top

    You will not get a modification from Chase. Period. They have no intention of granting them, they did not want to have this program to begin with. Everyone who has tried it has had the EXACT same things happen to them, over and over: you’ll have to submit and re-submit your paperwork (minimum of 100 pages) two or three times, they will “lose” or claim that they have no received other articles, they will “accidentally” send your stuff to the wrong department, they will not return your calls or emails, and they will bounce you from one loan officer “in charge of your case” to another. Agents who have worked for Chase have been quoted in the media as saying that they are instructed to give customers the run-around. Why do you think that 50% of the people who attempt to enroll in this program drop out? Do they suddenly lose interest in keeping their homes and decide that it’s too much trouble to fill out an application?

    comment-bottom

RSS feed for comments on this post. TrackBack URL

Leave a comment