loan Modification Companies

[CheapboatKev]

Has anybody sucessfully used a 3rd party loan modification company?

We inquired online, and now have been INUNDATED with calls, all wanting 2,500 to 3,000 bucks to negotiate with our lender.

Just got off the phone with a very very pushy rep...I told him DO NOT HARD CLOSE on me...He didn't back off......Told him I live in the Sales World, and this is a very hard close!!

I personally think it's a scam....

 

[ShaneCarroll]

Re: loan Modification Companies

Most of those loan modification and "improve your credit score" companies are scammers. I dealt with one to improve my credit score (stupid, I know, but I had to try something). Paid $70 a month for 6 months and they did nothing, all they do is mail letters to the credit bureaus to try to remove items, same thing I can do myself for free. Luckily there was a class-action lawsuit I knew nothing about and I got all my money back.

Back to your question, the legit ones are not-for-profit, and will consolidate the loans for free. I can't remember the name of the best one, but they have commercials all the time down there. I wanna say, Liberty something?

 

[BWR1953]

Re: loan Modification Companies

You do NOT need an outside company in order to do a loan modification. Just contact your mortgage company. They can guide you in their process.

 

[Tubingluvr]

Re: loan Modification Companies

We contacted our mortgage company and went through the government loan modification program, but didn't qualify.
When we were denied of the government program our mortgage company automatically started their in-house modification process and we were able to lower our payment by $400

 

[dr_bowtie]

Re: loan Modification Companies

Has anybody sucessfully used a 3rd party loan modification company?

We inquired online, and now have been INUNDATED with calls, all wanting 2,500 to 3,000 bucks to negotiate with our lender.

Just got off the phone with a very very pushy rep...I told him DO NOT HARD CLOSE on me...He didn't back off......Told him I live in the Sales World, and this is a very hard close!!

I personally think it's a scam....

those are all scams avoid them....you either pay a base as you have said or 26% of what you are behind...which ever is more...

 

[CheapboatKev]

Re: loan Modification Companies

Thanks..
We have pretty much decided to treat them all like time share salespeople

 

[Andy in NY]

Re: loan Modification Companies

what is loan modification?

 

[bruceb58]

Re: loan Modification Companies

A loan modification is where someone either paid to much for their house or got a loan that they can't afford and now want to modify the contract on the loan by convincing the lender to either lower the principal or lower the interest rate to make the monthly payments lower. Many lenders will go along with this rather than have the house go into foreclosure and then have to sell the house along with all the other hundreds of houses that are also on the market due to foreclosure.

 

[BWR1953]

Re: loan Modification Companies

A loan modification is where someone either paid to much for their house or got a loan that they can't afford and now want to modify the contract on the loan by convincing the lender to either lower the principal or lower the interest rate to make the monthly payments lower. Many lenders will go along with this rather than have the house go into foreclosure and then have to sell the house along with all the other hundreds of houses that are also on the market due to foreclosure.

How very judgemental of you. There ARE other reasons that people request loan mods besides trying to rip somebody off.

 

[bruceb58]

Re: loan Modification Companies

How very judgemental of you. There ARE other reasons that people request loan mods besides trying to rip somebody off.

Please explain where I say anything about trying to rip somebody off.

I am also not saying you shouldn't try to negotiate it. If the loan is a refi, it is a recourse loan so leaving the house still leaves you liable for them to go after any other capitol that you may have.

 

[dr_bowtie]

Re: loan Modification Companies

How very judgemental of you. There ARE other reasons that people request loan mods besides trying to rip somebody off.

you'd be surprised how many people that try to get a loan modifacation are those that over extended their credit...some have bought trucks, boats or other property and then cry pour me...it happens alot..

 

[CheapboatKev]

Re: loan Modification Companies

I didnt see anywhere in Bruce's comment either about "ripping anybody off"

There are multiple reasons that people do this, and I agree that many are stretched waaaaay to thin. I feel most of these people took out a fast home equity loan as soon as they moved into their new home and are now faced with monster debt with zero equity in their home.

This is not my personal situation..My loan was an ARM, that within the last few years had become way out of control.
We were able to sucessfully switch to a fixed mortgage last year..It has helped to a degree, but was wondering if any of these 3rd parties could help us further.

I honestly owe 200 plus grand on a 3 year old home that is appraised at under 60k....

 

[wajajaja02]

Re: loan Modification Companies

loan modification is the lender rewriting the loan to the current lending practice from the previous one that may be more favorable for you, affordable, geared toward the 30% income rule. It is based on the lender giving up potential profit or loss on the current loan that is in jeopardy due to cost or devaluation of the property. or change in the mortgagee's ability to pay. It may or may not be government subsidized stimulus program.

there is no need for a third party participant other than a local attorney for closing review.