Upside Down Mortgage

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Loan Modification Rip Offs

Question: Are companys who do loan modifacations a rip off?

I was recently speaking with a guy who works for a company that does mortgage modifications. He told me a lot of stuff that would save me lots of cash once I told him my situation

My situation: I have great credit, my mortgage is though GMAC (Freddie Mac) I have never been late or missed a payment, I have lived here a little over 3 years My interest now is 7.25 I owe 106k ,and my place is worth around 70K

They told me: For a price of 1500 they would get my interest lowered to about 3% and poss ably get my condo refinanced for what it is worth.

This seems like a dream come true...even if it is just my interest rate going down over half!
So my question is: Are these people for real, is it the best way of doing it, and can it be done in my circumstance. I really cant do it myself inless it is really easy so I don't mind a 3rd party doing it...I just don't want to be ripped off. Can anyone tell me whats up???

Answer: It's a common scam. NEVER pay upfront for these deals. Any legit business would get its commission from the lender, not from you.

You have great credit. So what's to stop you from approaching your lender and renegotiating from a strong situation yourself at no cost? You don't need these bottom feeders who prey on those with lousy credit.

Once they have your payment, that's it - there's no more incentive to help you and there's no guarantee that you will get the refinance deal.

You said it all "This seems like a dream come true".

If it seems to good to be true, it probably is.

Loan Modification Rip Off

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Federal Loan Modification Center

I was watching Fox News last night and saw their free loan modification story. They made it sound so simple and enticing that I could immediately tell that none of the people involved in the production, filming, or writing of the piece had ever tried to do a loan modification without an attorney. Well I have tried, and I’m writing this to say that even if I had completed my modification it wouldn’t have been worth the wasted time and aggravation spent pursuing it on a day to day basis.

In fact, the one thing I was waiting for was a couple testimonials from people that had done it themselves. Needless to say, there were no testimonials. I know why, too. Even if they had found someone that had seen their modification through to the end I’m pretty sure they wouldn’t be happy about it. Maybe relieved, but not happy. In my own experience after months of hold time, snotty people at my bank, and hundreds of unreturned calls all I wanted was for it to be over and I didn’t care whether it happened or not. I just wanted it over. Any testimonials like that would not have fit in to the sunny disposition of the report so in the back of my mind I knew I wasn’t going to be hearing from any success stories.

I’ve got to say, the piece actually upset me a bit because what was being said on the show was nothing like the reality of trying to get a do-it-yourself one done. I actually went to a couple non-profits that provided counseling and information but came away from them feeling like maybe I had taught them more about flying solo than they had taught me. At any rate, I didn’t walk out of one of those meetings feeling like I was loaded for bear and ready to represent myself in an actual negotiation. Part of that was because my mortgage was really complex with negative amortization and a bunch of moving parts that determined my interest rate.

Dealing with my bank was a pretty horrendous experience too. The bank wasn’t very helpful at all during the times where I didn’t understand what they were talking about or had questions on things like what to do next. A pretty common response was “We are your bank but we are also re-negotiating a contract you signed. It is not our job to walk you through the process to help you negotiate with us.†That seems to be a pretty common mentality as I found out from chatting with many people with similar experiences.

I should mention this as well. My house was fast coming up on a foreclosure so time was becoming more and more precious. The most wearing part of the whole thing was knowing that there was nothing I could do, being reliant on people that really weren’t interested in what happened either way.

It wasn’t until an acquaintance mentioned that Feldman Law Center had done his loan mod that I first heard of the company. He said his was done by an attorney and considering that my payments were a bunch of months late that should think about using one too. By that point I was more than happy to pay whoever wanted to take over the job for me. I handed everything over to them and they got the loan mod done.

It just seems that there was so much naivety in the Fox News thing that I wanted to share my experience. I hope it helps. For more information on loan modifications call 1-800-470-0865 or visit  Feldman Law Center.

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guarantee, warranty or predict a similar outcome with respect to any future matter.   Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

About the Author:

The Feldman Law Center is one of the premier loan modification companies in California, and our skilled loan modification professionals are trained to successfully and carefully guide homeowners through the loan modification process.

Article Source: ArticlesBase.com - Fox News – Free Loan Modifications