I think its time to make a Fraud News Section =(
According to the Commission, the defendants advertised, marketed, and sold mortgage loan modification services to consumers nationwide using Web sites including newhopemodifications.com and hopenowmod.com. The FTC charged the defendants with violating federal law by misrepresenting that they could obtain mortgage loan modifications for consumers in all or virtually all cases and that they would refund consumers’ money if they did not.
The FTC also charged the defendants with making false claims that they are affiliated with, or part of, the HOPE NOW Alliance, a non-profit organization that is a broad-based coalition of credit and home ownership counselors, lenders, investors, mortgage market participants, and trade associations. The HOPE NOW Alliance offers free assistance to homeowners who may not be able to pay their mortgages and need help working with their mortgage company or loan services. Seeking to capitalize on its name, the defendants called their firms New Hope Modifications and Hope Now Modifications, and used telephone numbers that included “HOPE,” to mimic the real HOPE NOW Alliance hotline which is 888-995-HOPE.
Read the article here
Loan Modification, Scams
Loan Modification Fraud
I don’t know why common sense is lacked by most people these days. Guys, because Obama is on TV saying he will help doesn’t mean the mom pop loan modification company will. In fact, I am willing to bet that less than 10% of the Loan Modification Companies in California are operating legally. Let’s forget my opinion for a minute, I know 9 loan modification companies here in Orange County - and not one of them is operating legally. 100% of all the companies I know personally are operating illegally. Don’t be surprised.
From ABC:
Foreclosures are at an all-time high, especially here in California, so it’s no surprise that loan-modification businesses are booming. The only problem is that a number of those companies are considered scams. Now ACORN, a non-profit organization helping people get out of loan trouble, claims that one of those businesses is in Buena Park. ACORN alleges that business is one of those scams.
Wednesday afternoon, about 30 protestors, mostly loan-modification clients of Center Legal, a loan modification company in Buena Park, gathered in the parking lot. Then they headed to the offices of Center Legal to accuse the company of fraudulently charging them thousands of dollars for services not performed. The protestors wanted to demand their money back.
But along the way, about 15 of the protestors, including members of ACORN who organized the event, and an ABC7 photographer, got trapped in a building elevator for more than half an hour.
To read the full article click here
Loan Modification, Scams
Loan Modification
From the article:
Named in the suit filed Wednesday in Miami-Dade Circuit Court are: Mortgage Crisis Solutions Association, Property Solutions Specialists, One Source Communications and Nationwide Financial Partners. Principals Donald R. Gillette and Flynn McCarthy also were sued.
The defendants are accused of charging homeowners in foreclosure as much as $2,995 for loan-modification services but not providing any services. The attorney general’s office also accuses the defendants of offering legal services to customers, which it says constitutes the unauthorized practice of law.
The state obtained an injunction freezing the assets of Mortgage Crisis Solutions and Gillette, identified as the company’s owner.
Click here to read the full article
Loan Modification, Scams
Loan Modification
oan modifications are designed to help homeowners facing a hardship save their homes from foreclosure by offering lower monthly mortgage payments. The loan terms are changed by lowering the interest rate, extending the loan term, possibly some mortgage forgiveness or changing the loan from an ARM to a fixed rate loan. If you are facing a hardship and interested in a loan modification you may feel overwhelmed with the thought of negotiating a loan modification agreement on your own. You may think you need expert advice. There are lots of loan modification companies these days that are willing to assist you, but it can costs thousands of dollars. Most homeowners who are struggling to meet their monthly mortgage payments don’t have that kind of money available. Don’t panic. If you can’t afford to hire a loan modification company you can negotiate your own loan modification by contacting your lender directly. Here are a few tips to help you get started.
Tip #1 The secret to a successful do it yourself loan modification is knowledge
If you take the time to become knowledgeable about the loan modification process you will greatly increase you chances of having your loan modification approved. Take time to research loan modifications and understand what your lenders criteria and guidelines are before applying for a loan modification.
Tip #2 It is critical that you prepare an accurate and compelling loan modification application
Your loan modification application will make or break your chances of getting your loan modification application approved. You must submit an accurate, complete and compelling application to get your loan modification approved. Don’t worry though, your lender will provide a checklist of everything that needs to be provided. If you have taken your time to understand the loan modification process and your lender’s guidelines your next step is to fill out the application forms and provide the supporting documents that your lender requests. You will need to prove that you are facing a financial hardship and that you will have the financial means to meet your monthly payments on time under the modified loan agreement.
Tip #3 There are more options and incentives for loan modifications available than ever.
The federal government’s new $75 billion Homeowner Affordability and Stability plan recently introduced by the Obama administration is providing incentives to lenders to offer loan modifications to their borrowers. Borrowers will also receive incentives for making their payments on time. This should give you even more confidence that you can successfully negotiate your own loan modification agreement.
If you can’t afford the help of a loan modification company to negotiate a loan modification, don’t despair. Take the time to become knowledgeable with the loan modification process and be sure to submit a solid application and you will have an excellent chance of succeeding.
Loan Modification, Mortgage, Uncategorized
loan modifications
LoanModNews on blogspot.com has a good article about ARM Mortgage Modification’s. From the article:
Lenders and the federal government have responded to this crisis and loan modifications are now an option for many holding an adjustable rate mortgage. A loan modification changes the terms of the loan so that the monthly payments are more affordable. This can be accomplished through lowering the interest rate, lengthening the payment term on the loan, partial principal forgiveness or changing a loan from an ARM to a fixed rate mortgage.
The federal government is encouraging lenders to offer loan modifications, particularly ARM mortgage loan modifications. The new Homeowner Affordability and Stability program even gives lenders a $1000 per loan modification to provide incentives for lenders to help troubled borrowers to help stabilize the mortgage industry and financial markets.
Loan Modification, Mortgage, Uncategorized
From the article:
“Question 1 What is a loan modification?
A loan modification involves changing the terms on a mortgage to make the monthly payments more affordable. This may include lowering the interest rate on the loan, extending the length of the loan, or in some cases principle forgiveness. The goal is to help make the monthly mortgage payments more affordable for a homeowner facing financial hardship.
Question 2 How do I know if I am eligible for a loan modification?
The main thing you will need to demonstrate to your lender is that you have the ability to make the new modified payments according to the terms of a loan modification. You will need to provide proof of your income and a financial statement that outlines your income and expenses that shows that you will be able to meet the revised monthly mortgage payments.”"
for more information please visit activerain by clicking here
Loan Modification, Mortgage, Uncategorized
Loan Modification, modification questions
A loan modification could mean the difference between losing your home to foreclosure and you staying in your home and making affordable mortgage payments. If you are applying for a loan modification it is absolutely critical that you avoid the following 3 mistakes or your loan modification application could be denied.
Mistake #1 Not presenting a convincing hardship case to your lender
One of the main things you must demonstrate in order to qualify for a loan modification is you must demonstrate that you are suffering from a financial hardship that makes meeting your monthly mortgage payments virtually impossible. You must describe a legitimate hardship such as loss of a job, divorce, or high medical costs in a compelling and convincing manner in your hardship letter. If you fail to do this, your loan modification request will not be approved.
Mistake #2 Failing to prove that you will be able to make the new monthly payments on time
You must provide clear evidence, supported by a financial statement and documented proof of your monthly income and expenses, that you will be able to make modified monthly payments according to the terms of a modified loan agreement. Lenders are concerned that borrowers that are granted a loan modification will once again go into default because they can’t afford their monthly payments. You must provide proof to your lender that this won’t happen in your situation.
Mistake #3 Submitting an inaccurate or incomplete loan modification application
It is imperative to submit an accurate and complete application. If you don’t tell the truth or omit certain items your loan modification request will most likely be denied. Your lender will be verifying all your income, expenses, assets and liabilities so it is very important that what you report is complete and accurate. If your application is missing information it will be set aside which will cause delays that could dearly cost you.
The bottom line is you must submit a convincing, accurate and complete loan modification application. You need to convince the lender that you are facing a legitimate financial hardship that is making it difficult for you to meet your monthly mortgage payments. You do this by writing a convincing and compelling hardship letter. At the same time you must convince your lender that you will be able to afford modified payments and make them on time. You will demonstrate this through the financial statement and supporting documents that you submit with your loan modification application. Finally, you must submit a complete and accurate application. Otherwise your loan modification request could be delayed or denied.
Loan Modification
Should You Hire A Loan Modification Attorney?
If you are considering a loan modification to help lower your monthly mortgage payments you may be confused by all the loan modification services that are available. New loan modification services and companies continue to crop up every day. It can be confusing for the financially strapped homeowner to make a decision on how to proceed with a loan modification. Many homeowners contact their lenders directly and complete the loan modification application on their own. Others hire a loan modification company and still others hire a loan modification attorney.
Do you need to hire a loan modification attorney to represent you in your loan modification process? There are times when an attorney can be a tremendous help in the loan modification process. If your lender is not cooperating or is difficult to contact, a loan modification attorney may be able to provide the leverage you need to get through. Other circumstances where a loan modification attorney can be helpful are when you feel you may have be a victim or fraud or predatory lending. Finally, if you have tried to get a loan modification on your own and have been denied, a loan modification attorney may be able to help. There are laws in place regarding unfair lending and an attorney that has experience with loss mitigation can help you in this area.
If you feel you may be the victim of fraud or unfair lending practices you should definitely seek the help of a loan modification attorney. This can be used as leverage to get a loan modification approved or further legal action if that is necessary.
The disadvantage to hiring a loan modification attorney is the cost. Attorneys usually require a large upfront fee for their services. These fees are usually non-refundable. It can be very difficult for financially strapped homeowners to come up with the money to pursue this type of legal action.
If you do not think you are the victim of unfair lending practice, fraud, or the denial of your loan modification application, a loan modification attorney might not be necessary. You may be able to hire a loan modification company to represent you or even contact your lender directly and request a loan modification on your own.
With all the unsavory lending practices in recent years, it is good to know that a loan modification attorney is available if you should need one. However, for routine loan modification requests, it probably isn’t necessary.
Loan Modification
attorney, Loan Modification
