Loan Deals: News

“There’s the good and the bad out there,” Firoved said about modification companies. “If you’re going to use a third-party service for a loan modification, go to the state authorities and check to make sure there are no complaints. Move forward cautiously.”

Pool said several companies don’t heed the state Real Estate Department’s desist and refrain orders.

“A lot of these companies are just crooks,” he said.

The department issued 328 desist and refrain orders and accusations from October to July - 240 of them in the Los Angeles-Orange County- Inland Empire region.

They order unlicensed shops to shut down their loan modification or foreclosure rescue business and force dubious companies to stop collecting upfront fees.

“The list grows weekly,” Pool said.

Mortgage

TAYLORSVILLE, N.C. — When Newschannel 36 first aired a story on the North Carolina Attorney General’s office’s investigation of two loan modification companies, Richard Green had just written his checks to one of them.

Green says 21st Century Legal Services contacted him, and offered a 30-year fixed rate loan at 4 percent. “My payment is $665, they said it would be $305, and I thought, ‘Yeah, that’s what I need right now,” Green told Newschannel 36.

His wife has had several back surgeries and is out of work. The Greens were one month behind on their mortgage when they got the call.

Green wrote four checks for nearly $500 each. According to paperwork he showed Newschannel 36, that money was for a $750 processing fee and 4 payments of the $306.66 for July thru September. That is the same amount he was told could be his modified mortgage. He says he was told to stop paying his mortgage while 21st Century Legal Services worked its magic.

read the full article here

Mortgage

Mach said most of the Wisconsin residents who complained asserted that the Federal Loan Modification Law Center had promised refunds if it wasn’t able to modify their mortgage. When they asked for refunds, they did not get them, Mach said.

If the order is ignored, Mach said, the case probably will end up going to the state attorney general for pursuit of forfeitures.

The Federal Loan Modification Law Center couldn’t be reached for comment Wednesday.

Mach advised homeowners who are having trouble making mortgage payments to always try to talk with the lender directly.

The Federal Loan Modification Law Center is the subject of a federal lawsuit in California filed by the Federal Trade Commission. In April, the FTC charged the firm with misrepresenting that, in exchange for an up-front fee, it would obtain a loan modification or stop foreclosure in virtually all cases. The FTC said the firm also misrepresented that it is affiliated with or endorsed by the U.S. government.

This is the second time we have mentioned Federal Loan Modification Law Center, the first being here in our loan modification scam article

Read the full article here

Mortgage

A Glendale man was sentenced to five years in jail on Friday after scamming dozens of Valley residents in a mortgage-assistance scheme.

John Herrera, 33, was arrested in December.

Herrera told victims he had “connections” and expertise negotiating with mortgage lenders to reduce payments and stop foreclosures, according to a statement from the Attorney General’s Office.

He would charge homeowners an upfront fee of $1,245.

However, Herrera never offered any loan modification or assistance and used the money for personal expenses, authorities said.

Initially after his arrest, investigators said he scammed 10 Valley homeowners.

After further investigation, the number grew to 47 homeowners.

Herrera pleaded guilty to one felony count of fraudulent schemes and artifices in April.

In addition to his jail sentence, he must pay more than $80,000 in restitution to victims.

Mortgage

Millions of homeowners are struggling to pay their monthly mortgage payments and risk losing their homes in foreclosure.  A bad economy, difficult mortgage loan terms, and decreasing home values have all contributed to this bad situation.  The federal government and lenders have stepped in to try to provide solutions.  Foreclosure is not only bad for borrowers but lenders as well.  The foreclosure process is very costly for lenders and it is hard to recover the amount owed on the loan through a foreclosure auction or short sale.  A hardship loan modification may be offered to borrowers who are facing a financial or personal hardship to avoid foreclosure for both the borrower and lender. 

A hardship loan modification involves modifying the loan terms to make the payments lower.  This is designed to help borrowers facing hardship the ability to still make their monthly mortgage obligations with reduced payments.  This can be accomplished through extending the length of the loan, lowering the interest rate, changing the loan from an adjustable rate mortgage (ARM) to a fixed rate mortgage, or in some cases even some principal forgiveness.

A borrower who is seeking a loan modification must demonstrate that they are suffering from a hardship that makes it difficult for them to make their monthly mortgage payments.  There are several hardship situations that a lender might find acceptable.  Some of these include loss of a job, a reduction in income, divorce or death in the family, military service, a major illness or high medical costs, as well as job relocation.  There could be other situations that qualify as well.  Each individual borrower’s situation is different, and each lender has different criteria that they use to determine hardship cases.

The way a borrower demonstrates their hardship is through writing a hardship letter that is part of the loan modification application.  The borrower needs to write a brief but compelling letter that explains their hardship and their willingness to correct their situation.  A borrower should be honest and to the point in the letter and provide back up documents if necessary such as divorce papers, copies of medical bills, or any other documents which will bolster their hardship case.

The federal government has responded to these tough economic times and is strongly encouraging lenders to offer loan modifications to homeowners facing hardship situations.  In fact the federal government has recently rolled out the $75 billion Homeowner Affordability and Stability program.  Under this program the federal government will actually pay lenders $1000 per loan modification they offer.  If you are a struggling homeowner facing a hardship, a loan modification may be just what you need to help get you back on track and save your home from foreclosure.

Loan Modification, Mortgage

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/

Mortgage

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.

Mortgage

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