Loan Deals: News

The Obama administration recently announced it was cracking down on loan modification  ”experts” who collect big fees but do little or nothing in return. Here are signs that you might be the target of a loan modification scam, according to the Federal Trade Commission and other agencies.

* You’re asked for upfront fees.

* You’re guaranteed success.

* You’re asked to pay by wire.

* You can’t get them on the phone after paying.

* You’re told to stop paying your mortgage.

* You’re told not to contact your lender or attorney.

* You’re pressured into signing documents you don’t understand.

* You’re asked to sign over your house title.

Free help is available from agencies certified by the Department of Housing and Urban Development. To find a local agency, go to www.hud.gov and click on Foreclosure Avoidance Counseling.

To read the full article click here: http://www.latimes.com/business/la-fi-consumerbriefs19-2009apr19,0,1501753.story

Loan Modification, Scams

Well, sad but it’s gotten to the point where we needed a section for loan modification scam’s and lawsuits involving them.

Click here to visit the section: http://www.loan-deals.com/category/scams/

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The Kansas Attorney General’s Office is warning consumers about scammers who offer to modify mortgage loans for a fee.

“In this time of economic uncertainty, Kansans facing foreclosure are being targeted,” attorney general Steve Six said in a news release late last week.

People who are behind on their mortgages or facing foreclosure are getting phone calls and at-home visits from people offering to modify their loan.

Up-front fees range from $500 to $1,000, the attorney general’s office says, followed by a larger fee based on the size of the loan, typically from $2,500 to $10,000.

Investigators say the companies don’t negotiate on the homeowner’s behalf but merely have the homeowner compile documents that the mortgage company requires for modification, then send the documents to the lender.

If a company claiming to be a modification specialist or a foreclosure rescue operation contacts you, follow these suggestions:

click here to read the full article

Loan Modification, Scams

Attorney General Bill McCollum sued a South Florida loan modification firm and its affiliated companies this week, alleging they violated state law by charging fees for foreclosure rescue services.

The civil lawsuit was filed in Broward County Click here for restaurant inspection reports Circuit Court on Thursday, against Keep Your Property, its owners William R. Colon and Carlos A. Hernandez, and Centro de Prevencion y Educacion Corazones Unidos H.I. Visida Inc., a nonprofit organization, and Economic Alliance Group. The suit alleges they violated state laws prohibiting deceptive and unfair trade.

Colon and Hernandez couldn’t be reached to comment.

Consumers told state investigators that they paid an upfront fee of $2,200 and monthly fees of $550 after the company guaranteed to file all the paperwork required to prevent foreclosure action or lower mortgage payments. But many consumers found later that the company failed to contact lenders and take any action on behalf of homeowners

Loan Modification, Scams

If you are considering a loan modification you probably have several questions.  It can be a confusing time, trying to get your bills under control and deal with an unfamiliar process such as a loan modification. To get your application for a loan modification approved you will need to become familiar with the process and do your research ahead of time.  Here are answers to some of the top loan modification questions to help you understand the loan modification process.

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.

Question 3 What qualifies as a hardship?

In your loan modification application you will need to demonstrate that a hardship makes it difficult for you to meet your current monthly mortgage payments.  Everyone’s individual situation is different and there are no set hardships, however divorce or separation, death of a spouse, loss or reduction of income, illness, military service, and job relocation are all generally considered to be acceptable hardship situations.  You will need to write a persuasive hardship letter as part of your loan modification application.

Question 4 Will a loan modification help me avoid foreclosure?

Yes, a successful loan modification can help you avoid foreclosure.  The goal of a loan modification is to change the terms of the loan and bring is current so that foreclosure is avoided.

Question 5 How do I get started with a loan modification?

Your first step should be to get a good understanding of the loan modification process.  Once you have done your research, contact your lender’s loss mitigation department and request a loan modification application.

If you are struggling to make your monthly mortgage payments you should definitely consider a loan modification.  The federal government is encouraging and offering incentives to lenders to work with struggling homeowners, so there is help available.  Start your loan modification process today.

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