Question
Why are homeowners being lied to pretending there is a loan modification?
So far I have not met a single individual who has been successful in modifying the terms of their loan. The most the lender offers (I have contacted Citi, Countrywide, Wamu) is deferring payment from 2 to 6 months depending on your application, and then you have to repay that amount on top of your originaly monthly payment after the deferrment period is up at a higher interest rate for the deferred amount. The 5 loan modification companies I contacted wanted an upfront fee, such as $3,500 they were so kind to say I could charge on my credit card, while making it crystal clear there were no promises they could get my loan modified but for sure they will help me with a short sale which is where they make most of their money. They also couldn't give me any referrals to anyone whose loan they had modified. An attorney and 3 of the loan mod companies advised me to start missing my payments so I wouldn't delay the short sale process that nobody really gets modifications. So...while Obama is giving handouts to the bankers who are screwing us over, we have to foot their handout while suffering. I take it the modification hoopla is just smoke and mirror to conceal how screwed over we are getting and to prevent massive numbers of immediate heart attacks, just prolong the process of people losing their homes. THe lender accepted artificially inflated appraisal values. How else does a home value drop by 45% in 1 year? So yeah I'm doing my part in being a big girl but they're being big crooks who are lying about providing loan modifications when they are NOT.
8 months ago - 5 answers
Best Answer
Chosen by Asker
You need a loan audit. The banks have no reason to modify your loan. They hold all of the cards. A forensic loan audit finds violation with federal and government laws, guidelines for the closing process, and violations in the truth in lending requirements. There are a few good companies marketing this. The one I used is Summit Legal. They work nationwide. Once you have the audit the banks are a lot more willing to work with you. I went from an ARM that had recently adjusted to 11.5% to a fixed at 6.25. I put their website as the source, even if you dont use them, they have really good videos and information on scams. I hope this helps!
Source(s)
www.summit-legal.com
by unclematt49
8 months ago
Asker's Rating: 
Other Answers
How are home owners suffering? YOU agreed to your mortgage payments....period. There was no clause saying that if your home went down in value, you get a bail out or a modification. Be a "big girl" and man-up to your obligations! People NEED to lose their homes in order to make homes more affordable for people who did not foolishly take on more of a mortgage than what they can afford. Hey guess what......i bought a new car yesterday and the car went down in value 30% the second I drove it off the lot! Were is MY bailout??? If you could not afford the mortgage through good times and bad, then YOU had no business getting a mortgage in th first place...PERIOD! I am all for letting these losers lose their house that they never belonged in the first place. Too many blue collar workers trying to live in white collar neighborhoods! Live within YOUR means people, not mine!
by Ryan M- 8 months ago
The problem people are having with the lenders is that they don't know how to present their hardship to the bank. Lenders are taking forever and being rude on the phone because everyone and their brothers are calling them. $3500 fro a loan mod is bull! $995 and being prequalified by a company before they take a deposit is the way to go. Yes it does work....Don't short sale if you want to save your home. Feel free to ask me any questions.
by brandonbroker- 8 months ago
Who is saying there are loan modifications? I don't understand why lenders won't agree to modify their loans. Seems like it'd be much better for them in the long run to accept a lower rate (that they know the borrower can, and has, paid in the past) rather than insisting on a balloon payment or much higher adjustable rate, then foreclosing and taking a loss on the principal. That way everybody wins (or loses less, at least.....) It seems stupid to me that they wouldn't want to work with borrowers even to benefit themselves. At the same time, mortgagors aren't ENTITLED to loan modifications and as far as I know nobody is promising them they are. If someone promised you this, go sock them in the face. Otherwise maybe you misunderstood what the government intended to do with the markets. If you need to defer your payments because you lost a job or something, that may be helpful in getting back on your feet. Otherwise, deferring payments and having the interest pile up is a terrible idea. Good luck with everything though, seriously; I know how hard it can get.
by fleepflawp- 8 months ago
Not artificially inflated home values it was the market at the time. Lets face the facts you purchased like so many others thinking you where going to make a fortune in a year or two, well the bottom fell out and your did not and now are in a position whereas through foolish agreements (interest only, low ARM) made by you you have to blame someone other than yourself. The bailout is for people who can actually afford the home they have without 10 tons of other debt. Like your two SUV's and 30K in credit card debt. Home values drop that much because of supply and demand supply is high demand is low so prices drop. Your anger as to getting so called screwed over, is really in effect you made a bad investment and want to be bailed out of it, accept the responsibility that you overpaid, you signed the mortgage thinking that you would make a great profit and it did not work that way since you came at the end of the bubble. End result YOU signed the mortgage, YOU knew what you where purchasing, YOU knew that rates might go up, YOU overspent what you could afford, YOU and only YOU ar responsible if you lose that home YOU should not have financed more than you could afford SO YOU need to bail yourself out it is not my fault YOU are in theis d=situation it is YOURS
by Pengy- 8 months ago