Is a Loan Modification Just Another Exotic Mortgage?
This is per an article in Mortgage News Daily and the latest developments from the Wall Street Journal here > WSJ
“Loan Modifications Are Just Another Exotic Mortgage”.
Isn’t this a big part of why we are in the real estate mess that we are in right now?
The bottom line is that after initially referring a client (yes just one) to an “attorney backed” loan mod firm; it not helping out my client and further investigation into the ability of loan modifications to help a homeowner long term, I have come to my own personal opinion and conclusion that
LOAN MODIFICATIONS DO NOT WORK FOR 99.9% of homeowners.
They are a temporary fix with most lasting, at most, for 5 years which is just delaying the inevitable.
If you want to stay in your home, and haven’t yet spoken directly to your lender about qualifying for a loan mod please do so but directly with your lender as it is in my opinion that if the lenders will not or can not approve you for a loan mod with the current monetary incentives that the President is offering lenders to approve loan mods, than a third party loan mod firm that charges a fee, from a law firm or a firm that is attorney backed or not, will not help you any more than what you can do on your own.
Consider this, from what I’ve last read, more than 60% of the loan modifications firms in California, including attorneys, have gone out of business because the new law California instituted states that loan mod firms, again including attorneys, can not charge an upfront fee until they have successfully modified a loan that is agreed on by the homeowner. Moreover, the hold message that some lenders have when you call into their loan modification department or home retention department, caution you of third party firms offering loan mod services as the the lenders themselves can work directly with you to see if you qualify for one of their loan modification programs.
If you’d like to discuss your personal situation to learn what options are available to you, give me a call at 702-204-3945 or you can contact me via email kenny@tfmcpartners.com or by leaving a comment below.
Kindest Regards,
Kenny Wagner
The Foreclosure Mitigation Company
P: 702-204-3945
