What about these loan modification companies?

chinchetteFebruary 20, 2009

My mortgage company gets solicited every day by these loan mod companies that are "experts" and want to team up. It is not legal in my state to take an upfront fee.

Has anyone gotten a loan mod through one of these loan mod companies?

Thank you for reporting this comment. Undo
dave_donhoff

Chinchette,

Most loan mod companies have attorney affiliates, and can thereby get away with charging upfront fees. Ironically, in no states are attorneys held to the same consumer-protective fee standards as the lending industry.

Cheers,
Dave Donhoff
Leverage Planner

    Bookmark   February 20, 2009 at 5:23PM
Thank you for reporting this comment. Undo
chinchette

When DH went to a seminar put on by Florida Assoc of Mortgage Brokers, it was gone over how it is not legal for the broker to work with the attorney in that type of relationship. He gave an analogy of a pretzel. You can bend it and straighten it out and call it something else, but its still a pretzel. However, I did not attend the seminar and am not aware of what statutes he went over. We just ruled it out.

I'm curious if anyone on the board has done a mod with one of these companies. They all claim to be experts. We did mods for one bank that solicited mortgage brokers to do the mods for them, but that was different. That bank was the one who was initiating it. By the way, that bank has put all their mods on hold until 4 March, because they are now waiting to hear what the stim package will be. A lot of things are on hold due to that. Hm. I thought it was supposed to be to get things MOVING.

    Bookmark   February 20, 2009 at 9:16PM
Thank you for reporting this comment. Undo
pamghatten

Most lenders will modify your existing loan when rates go down, for a fee. This is instead of refinancing, not because you can not make the payments.

Guess I'm not sure what these Loan Mod companies are claiming.

    Bookmark   February 21, 2009 at 6:17PM
Thank you for reporting this comment. Undo
ncrealestateguy

Most of the companies are claiming to do what you can do yourselves. If you can pick up a phone and call the bank, you can get the process started. These companies are preying off of the misfortune of people that can least afford to pay a hefty fee.
Just reserch the process on line, and go from there.

    Bookmark   February 22, 2009 at 8:11AM
Sign Up to comment
More Discussions
What would you do? Stay or Remodel?
We just bought a new house. It's somewhat of a starter...
annaw_123
Specific real estate agent required by divorce decree
Hi real estate agents, does anyone know if it is legal...
martine81684
Questions for buying a home with a septic system
I just came across an interesting article about issues...
cbrooks42
pros/cons of first floor master
I've looked at several newish (1990s or newer) homes...
hairmetal4ever
Emotional rollercoaster of home selling
Lately, this process of having my condo up for sale...
Acco
Sponsored Products
Trans Globe HL-4 SL Chandelier - Silver - 21W in. - HL-4 SL
$568.10 | Hayneedle
Silver Gravity Salt & Pepper Grinder Set
$29.99 | zulily
Access Lighting Pulsar 70072LED Flush Mount / Wall Mount - 70072LED-WH/GLD
$270.00 | Hayneedle
Lloyd Flanders SoHo All-Weather Wicker 36 in. Square Cocktail Table - 207444-092
$473.00 | Hayneedle
Kichler Structures Island Light - 37.5W in. Brushed Nickel - 2955NI
$334.62 | Hayneedle
Mississippi State University Rectangular: 5 Ft. 4 In. x 7 Ft. 8 In. Rug
$199.00 | Bellacor
WallsNeedLove Lavender Self-Adhesive Wallpaper - WP31-8FT
$66.00 | Hayneedle
WS Bath Collections Ecopelle Waste Basket - ECOPELLE 2603CR
$98.00 | Hayneedle
© 2015 Houzz Inc. Houzz® The new way to design your home™