Loan Modification Facts that You Should Know
Due to the fact that over 3 million US households are currently struggling to pay their mortgage and faced with property foreclosure, there has been a significant increase in the amount of loan mod applications filed each month from the last year. The vast majority of all home owners are aware that receiving a loan modification is normally their best route when it comes to saving their homes.
As a result, a lot of them have proceeded forward and completed their applications but have ended up facing a handful of problems and issues.One of the largest headaches run into by borrowers is mortgage modification cons. Due to the fact that there are hundreds of thousands of borrowers who are looking to get their mortgage loans worked out, some individuals or commercial borrowers have taken note of the profitable money making opportunity in providing mortgage modification services.
In turn, these companies have set out to capitalize on the shady place the homeowners are trapt in and have made out well on their dilemma. Instead of negotiating a genuine solution and a clear way for working out a mortgage loan modification, these con artists ask for a huge pre-service fee from the homeowner no matter whether the mortgage is modified or not. Once the homeowner, who has virtually no decision but to agree to the application charge enrolls, the fraudulent company normally either pockets the funds or comes up with some misleading excuse within a couple of days that the loan modification application was rejected and takes all the funds for their setup services.
Borrowers who know about these misleading companies that demand upfront expenses before actually getting the mortgage modified have recently started falling for a different hustle. New companies have began to claim they will not require service fees until the loan mod renegotiations are accepted. But really instead of having the applications accepted by the bank, these scam artists tell that their own legal advisors and loss mitigation specialists have approved their applications and they need to pay a charge before the applications is sent to the bank.
Needless to say, whether the businesses own attorneys or consultants accept your application does not help the homeowner’s dilemma. Only the lending institution can approve or reject the renegotiations and only after they approve a mortgage loan mod will the borrower’s loan be renegotiated. With this in mind, homeowners are advised to check to make sure that they do not pay any kind of service fees until the mortgage lender allows their loan mod renegotiations.
modification of loan offers a way out of you and your families financial struggles.
Make sure you get the story straight and put out a balanced story/ article. You failed to point out the mod companies who did get the job done under your model of “pay after the service is done” but then have to chase the homeowner to pay since many don’t.
Apparently you aren’t in the business because if you were you would know that many financially strapped owners do not pay the servicer who just saved their home and put in on average 20-25hrs on a modification.
If you were in the business you would know that the homeowner gets the modification offer directly from the lender and is under no obligation to notify the firm doing the work.
Once the homeowner gets the mod offer they are happy with the mod firm would never know and even if they do find out and the homeowner doesn’t pay the chance of collecting for the work and the job accomplished are slim to none.
Make sure you interview the thousands of homeowners out there who’s homes were saved, mortgages modified, and in some cases balances reduced by paying a firm after some of the work is done up front for free, and the balance of the funds are held in a trust account and withdrawn after the final modification was done. This protects both the homeowner and the modification firm.
If you were in the trenches every day and knew all the illegal tricks the lenders pulled to scam the homeowner and try to drive a wedge in between a legit firm doing their job you would know the model you propose rarely works.
Get the facts before you put out information in the public interest. I hope you will at least publish this post so homeowners get the full story not just one side.