Most people that are experiencing financial difficulty have no doubt heard of loan modifications. They are talked about on the nightly news and although once shrouded in secrecy, they are now common knowledge. Those also in the know, realize that the government solutions to the financial crisis we’re experiencing will hardly solve the problem. The first round of government intervention after TARP 1 created “Hope For Homeowners” which was the federal government’s attempt at loan modifications.
Well, here are the facts on that one. Of the supposed 400,000 families that were to be shielded from foreclosure, as of this report, approximately 400 loans (that’s right 400 total) have been refinanced. Industry executives correctly called the program “useless” because of its onerous details.
Here are the stats on the “Hope Now Alliance” formed in the fall of 2007. Ironically, a former sub-prime mortgage executive was put in charge- can you say “fox in the henhouse?”.
Of the 2.2 million foreclosures supposedly “prevented” by Hope Now Alliance, 53% of homeowners were in default again within 6 months. Why, you ask? Because the supposed modifications led to higher, not lower payments, since lenders are tacking on missed payments, taxes, and big fees to borrower’s monthly bills.
The newest round of “foreclosure prevention” solutions from the Obama administration unfortunately will not fare much better. Lenders are currently overwhelmed with calls from borrowers since the plan was announced, and don’t have the resources or the training to deal with the inquiries.
Homeowners who have tried to get their own loans modified have met with frustration, deceit, incompetence, bureaucracy, and failure due to a system which is rigged to favor the banks, not the homeowners.
I speak form personal experience. Hurricane Katrina wiped out my real estate business and I had to do my own loan modifications. I spent over 2 years trying to get insurance claims paid on damaged properties after hiring several attorneys, public adjusters, and engineers.
The irony was that lenders only allowed a 3-6 month grace period 개인회생중대출 and they wanted their money. I scrambled not only to rebuild my business, but also to save my own home after this catastrophe. I learned a very hard lesson. The banks are definitely not looking out for you. Having a professional on my side would have leveled the playing field.
This report is therefore dedicated to help those that realize that hiring a professional loan modification firm with a track record of success, is their best solution in keeping their home.
Despite what the T.V. pundits tell you when they say “…contact your lender, they want to work things out…” trying to get your loan modified yourself is akin to representing yourself in court. Nine times out of ten it’s a bad idea.
With that said, it’s easy to be overwhelmed with all the conflicting information out there. After reading this report, you will be armed with the knowledge to evaluate whether or not a loan modification company is legitimate or a scam!
Before you make a decision to hire anyone to handle a loan modification it’s vitally important that you answer the following 11 questions. The answers to some of these questions are more subjective and to be taken in as part of a whole, others are absolutely critical.
1.) How long has the company in question been representing clients for loan modifications?
While the fact that a company is new by itself doesn’t necessarily mean that you are going to get a bad modification, you’re less likely to be scammed if the business you are dealing with has some sort of track record.
If it is a brand new company, or they just started doing loan modifications, you want to use more caution. Even attorneys and law firms are no exception to this rule. Law firms are no exception to the economic turmoil we live in, and as they have seen their billable hours reduced, some scramble to find work in other areas such as loan modifications.
Whether they are actually competent enough to get a successful modification done is a different matter, and they must be evaluated as stringently as any other company.