Home Loan Modification

Loan Modification has gotten a bad name… and rightly so. With all the scams and bad press, it is no wonder people are skeptical of loan modification companies.

If borrowers who are struggling can get a loan modification for free, then why would they pay someone else to do it for them?

I can answer this question by reminding people that they can prepare their own taxes and represent themselves in a court of law, but most people make the wise choice of obtaining the services of a professional. As well they should! It has been reported that less than 9% of all applications submitted directly by homeowners result in a loan being successfully modified. That means that 91% of the people who attempt to complete their own loan modification without the help of a professional will have their request for a loan modification denied. With most lenders once the borrower is denied they are not eligible to request a loan modification for at least one year. This “dirty” tactic obviously works in the lender’s favor but is not in the borrower’s best interest.

The reality is that while banks masquerade as wanting to help borrowers, they are really nothing more than collection agents trying to collect as much money as they can from borrowers under the guise that they will entertain a modification. Once the Modification request is denied then the borrower has no choice but to deal with the collections department of the lender and pay whatever is owed plus penalties. Ironically, just the other day while the head of our mitigation department was on the phone waiting to speak with a negotiator a national lending company, the on-hold message said “This is an attempt to collect an outstanding debt”. When the lender’s “negotiator” did finally pick up the line he introduced himself by providing his name and stating that he was a debt collector. Our representative stated that he wanted to speak with a “negotiator” and not a representative from the lender’s collection department. Of course once the lender realized they were dealing with a 3rd party the game was over and the call was transferred to a negotiator from the mitigation department. It’s a well known fact that lenders do not want borrowers to be represented by professional negotiators anymore than an insurance company wants to negotiate with attorneys.

Loan modification has gotten a bad name, because a few unethical firms will collect fees from desperate homeowners and fail to deliver results. That is why we offer a money back guarantee and that is also why our fee is collected in accordance with the recommended “Advanced Fee Agreement for Loan Modification Services”, established by California Department of Real Estate, which structures a three payment plan over the course of the Loan Modification Process. In other words you as our client are “paying for our service as it is provided”.