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IF you are having a lawyer do your Loan Modification, be aware that lawyers do not guarantee the outcomes of their cases or matters. If you have spoken to a representative of the Law Firm, keep in mind they are all independent contractors and what they say they cannot represent the Lawyer or law firm.
Here are some of the comments I have gathered online by thousands of homeowners seeking a Loan Modification on their existing loans.
Question: I’m in a fix myself, and I’ve been a REALTOR for 17 years. There are a lot of angels, on the loan mods, some want money up front, and there is no guarantee a loan mod will be approved even with a rep co. and you’ve lost 2 months to find out that it’s a no.
The problem is when most of these people dont have any equity, so I have a different mindset, on chapter 13 or sell, can we check with Better Business Bureau (BBB) for the reputation of these Loan Modification companies?
Answer: Well, the BBB seems to be giving all loan mod companies lower than expected ratings due to the fact that the field is getting filled with corrupt businesses. The legitimate companies are being spoiled by being in a bunch of rotten apples. That said, it is one of the sources you should examine, but not the only source.
No way around it, many potential clients who call my office want to hear that we guarantee their loan modification. They have read promises of balance reductions and super low fixed rates on the websites sites of loan modification companies, heard the radio commercials, and opened their junk mail (both email and US Mail).
We know what people have heard. But when one thinks it through, a guarantee is just plain ridiculous. Each loan modification is unique. Some of the factors at play are the borrower’s ability to pay, the hardship, the location of the property, the amount of equity to loan balance, the lender’s financial situation, the attitude of the negotiator at the lender, the timing (whether the month was bad for real estate sales or really bad for real estate sales).
So many things affect the outcome. One of the hardest parts of advising people on loan modifications is making sure that a person really wants to stay in his home. Sometimes, the home is just unaffordable, no matter how low the rate.
When someone makes $3k a month and they bought a $700k home with no money down, it might be time to face the facts. Letting the house go through short sale or otherwise and then renting might really be the best choice. This is a discussion I have with my clients, and I make sure they get an education on all their options. The decision is left to the client, but I make sure it is an informed decision.
Question: My neighbor had a guy call him about a loan modification and said he was a lawyer. He said it would cost 3,000 dollars for his fee and he would take the cost of his house from 310,000 to 233,000 and bring his interest rate from 6.5 to 5, plus 3 months off from paying his mortgage. Now this sounds too good to be true.
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