Loan Modification Companies - How do they work? Has anyone used them?

I do not believe there is such a thing as a loan modification company.

Each mortgage company has an department that works on loan modifications for the loans they own and service. Therefore if you are behind on your loan and want to have the missing payments tacked on to the end, you would need to go thru your own mortgage company.

I've never heard of Loan Modification Companies either?

There are such companies that will handle everything and negotiate a better rate and everything else with your mortgage company.

what are Loan Modification Companies and how exactly do they do this, what do they charge?

With the economy the way it is now, if you need your loan modified it probably means you are behind or in financial trouble. Why waste money using an 3rd party when you can simply call your mortgage company and do it yourself?? It is not rocket science.....we had to do it a few years ago and the paperwork was very straight forward. Hubby lost his job due to the 9/11 fallout and we were behind. He finally got a new job and paperwork was fedex'd and faxed back and forth.
Took about a month but it was not a difficult process.

I DID call both of my mortgage companies and they BOTH said basically "sorry, refinance, we don't change existing loans"

I was able to get a mortgage modification on my first mortgage. I printed the forms online, filled them all out, and faxed them in. It took a few follow-up phone calls, answering some additional questions, and faxing some additional information. But they did modify the loan. They reduced the interest rate slightly and changed our payments to interest only for three years. At the end of the three years, our loan gets reamortized and the interest rate reinstated to the previous level. We are currently saving about $600 per month, but at the end of the three years, we will be paying about $100 per month more than we previously were. (I certainly hope that our financial situation improves by then!)

I also tried to get a modification on our second mortgage, and they said they couldn't do it. So I guess it depends a lot on the lender. But with the housing market the way it is right now, they lenders may be more willing to work with you because they really don't want to end up foreclosing on your house. In all likelihood, they won't be able to sell it without losing money.

well I will call them both and give them each another shot ... will let you all know what transpires!

If you're behind on your mortgage payments, you can contact your servicer directly and attempt to negotiate it yourself. In fact, they encourage it. The federally endorsed HOPE Alliance program is also available. The problem...the consumer doesn't know the rules for navigating a successful modification. Moreover, the frontline contacts have an average mortgage experience level of 2 years. Their job is to screen and push back. Their goal???????provide the proverbial ???????NO???????. CNN reported, of some 1.2 million mod attempts through the HOPE Alliance this year, about 23% were actually mods. The rest were actual repayment plans with much higher payments than the original. I????????ve been doing mods since 1992. There is an art to it and most consumers can????????t play the game well. Remember freshman high school football if you hadn????????t put on a helmet before? Sure, you could run around trying to knock someone down and you looked like a football player???????but you weren????????t???????really. Same thing here unfortunately. I????????m a consumer advocate???????questions? Call 805.340.6484. Mike

I am using one of these companies right now because WaMu did not really want to do anything. I discovered there were some things done that should not had been done, so....I am keeping my fingers crossed. What is rough right now is waiting for WaMU to respond to my modifier.

You can contact you mortgage company, but beware not all companies are equipped to handle the demand of loan modifications. Contact you mortgage, you would be surprised at what they are will to work with you on. In the tough economy and foreclosure rates going, they want to keep you in the house so that they can continue to get paid. Some mortgage companies are just the servicing agents (collection agents)for the investors

I called and they treated me like I was speaking Martian. Can anyone give me an idea of what to say other than "I am struggling to pay my mortgage and would like to request a Mortgage Loan Modification"? I have been 3-4 weeks late for the past 4 months.

Ask them if they have a loan modification department or a loss mitigation department. Other than that, I'm not sure. Mine was easy, and they had the forms right on their website.

Many times when you try to negotiate the terms of your mortgage yourself - you will not get the best reconstruction of your loan. I work for entrust (xxxxxxx) - we have a department that strictly represents you in negotiating with your lender. I learned the hard way - renegotiated to an interst only payment for a "fixed" period - which will relieve some of the pressure now but I will be back in the same position in 24 months - now with a larger balance. Wish I had used the company! Good luck!

[color=DarkRed][/color]Email removed-Solicitations not allowed per TOS ..Bossy4455 [color=Red][/color]

And what does your company charge for this service? No one who talks about the companies who offer this service (for a fee) seems to be willing to say ....

just my opinion smo,but that person was soliciting as a guest.anyone who does that is probably a scam anyway.again,just my take.

I am sure you are right ... it would be nice to see what companies charge for something that seems pretty easy to me. But that's just me being that I am a penny pinching cheap-o!

Hello Smo, I am currently experiencing your same situation. I filled out a app on line in regards to help with modifiaction. And recieved phone calls from three different modification companies wanting to help.. I feel if I make a sudden move I might regret it. I am on here because I googled Modification companies trying to find out if anyone has used one and if they were Satisfied with the service they may have recvd.. I have contacted my Mortgage Co. a few months ago and would not help me at all.. Basicly told me to stop paying on my other bills and focus on paying them only.... But as you know there are those bills that you just have to pay the non credit bills Day care, Groceries, Gas, Lights, Water.These have gone up as well do to the current market. I will keep you posted if I find out any information.

Stowne ~ I have been using a Modificatin company, The Debt Advocay (sp) Group and have been very satisfied with them They have been great to work with. I did have to pay a fee to start things and if they could not get a modication, I would be refunded, and there is also a fee at the end of the process if they get the modification. For us, we are ending up with a fixed rate 3% less than what we started with plus lower payments, which include my insurance and taxes. Our mortgage company would not work with us either. They would all the time say they did not get paperwork or this or that, it was a mess. I do know that even the modification company had a hard time getting a response from them, but finially did and were able to work things out.

Now this has been my experience. I am sure others have not had good experiences and there are companies out there that are not legit. I guess I kind of lucked out.

I have done some IT work for a company in this field and I think they charge $3,000 which seems steep, but I know one of the people personally and was told they were able to get an 8% loan modified to a 4% fixed. The other thing they do is work to get principal reductions. That is they get the bank to revalue the property at current value and lower the loan amount.

My take on the situation is that the large institutions reacted to this mess by firing all the people who knew how to do anything. So when you call them, not unexpectedly no one can help you.

I don't endorse this type of business but the other option is hire an attorney... then you might as well put a match to all your available cash.

of course not because its a large sum...the moderators wont let them solicit services anyway so he probably wont return.

I used AFS Loan Modification Company. Rick was my rep, and he was very knowledgable and understanding. We ended up with a fixed rate and a 300$ a month lower payment. We are now current. I have to say it was a miracle with our credit, but I guess their program is not based on credit. Lucky for us.

There are a lot of scammers out there so beware. As the owner of a loan modification company, I have been really disappointed in the amount of scammers that are approaching this sector. I've been in the banking industry for over ten years and I feel that if there was ever a time to get your loan modified, it would be wise to start the process now!

You are all absolutely right, you can do the process yourselves. The government is pushing forward with supporting loan modifications so, again, it's a great time. My company's mission to help people stay in their homes and lower their payments. We all have an opportunity to capitalize on what the government is doing to make up for the greed of Wall Street in the past years.

The scammers are indeed charging a large sum, usually thousands of dollars upfront. RehabMyLoan charges a $350 set up fee and a $100 monthly service fee, cancellable at any time. We have been very fortunate to have been able to help people through these troubled times. Any service that doesn't disclose exactly what they do and how much they charge is a scam.

I'm always interested in helping people so, if anyone has questions or wants to reach me, feel free to write. Good luck to everyone!

Thought I'd write an update on my Loan Modification results. Wells Fargo I sent everything and received final acknowledgement of all documents being received and reviewed on 9/24. 10/7 it was assigned to a processor, and 10/9 it was marked as file complete. The letter sent to me says "We are in the process of reviewing your request and will advise you of the status within 30 days. I have called every week and keep getting told it is still "no status".

Accredited can suck eggs. I sent everything in by mail the same day (9/24) as to Wells Fargo. 10/29 I still had no status so I sent it all in again via fax. Then I get a call the next day saying "sorry, our investor has stopped all Modification requests as of 10/29". I have called for the past 3 weeks asking if that was still the case, and thus far the answer is yes. I asked what the Bailout was for, and they said it was for the banks, not for Modification.

Has anyone else run into this where a request has been flatly denied due to the investors turning the spigot "OFF"?

i would recommend hiring a reputable company that is experienced in doing loan modifications. beware... there are many companies out there that are scams. also, beware of the ones that charge anything about $3K-$4K for their services. in one of the prior post he mentions there is an art to modifications; that is exactly right. would you go to court/trial without proper representation? this is your home and it needs the right person taking you from where you're at to somewhere where you need to be; a lower payment and out of foreclosure. the companies that provide a true MOD, they have inside contacts with the lenders, they know ALL the options that are available and they know what to show and what not to show. the consumer does not. in fact, it is known that someone with a 800+ score and tons of equity would have a higher rate compared to someone that has a score in the 400s and NO equity doing a MOD; ususally 5%-6%. that is a fact! good luck!

Yea... nobody talks about what companies do this... well I didn't want to go through all the head ache of contacting my bank because last time I tried that I was on the phone for 2 hours ( no joke) and I felt like the bank was trying to catch me on a lie instead of helping me out. I contacted a company called Liberty solutions and spoke with an agent named Josue. I was so shocked on how easy this was for me.... Basically I explained my situation and let them know that I was 3 months late on my mortgage and couldn't afford my $2,200 mortgage payment anymore. This company informed me that they have lawyers who specialize in ???????loan modifications" who will negotiate my terms directly with my bank. I was then contacted by the lawyers and some time later the lawyers informed me that they were able to save me $500 off my mortgage. I was so happy with the results! Here is the number??????? 847-302-0501. Good luck to everyone else??????? I got one huge rock off my back ;)

yeah but what do they charge to do the modification? That is the problem, I can't afford my payment of $1200, how am I going to come up with thousands just to save 100-200 per month? Yes, in a year I'd recoup it, but I just DON'T have that type of money!

I told Josue just that when I visited the office.the good thing about that company was that they accepted credit cards. So I charged it on my credit card and I'm making payments on that. With the amount I save a month I paid off the card in just a couple of months. It doesn't hurt to ask if you qualify just call the number... knowledge doesn't cost nothing ;)

how many times can you get a loan modification on your mortgage

You can do a loan mod yourself. Don't let these companies fool you into thinking you can't! Why waste thousands of $$$???

but if my mortgage company says their investors are not doing any more modifications, how can these companies help me?

and I just got a call from Wells Fargo that they will not offer me a loan modification because I am not more than 3 months late, and I don't make enough money to pay even the modified loan. Sooo ..... I don't make enough to pay the higher price, nor the lower modified price, so they'll leave me struggling to pay the higher price?

Thank you for sharing useful information.He should have his license revoked for approving that loan, and if he encouraged it then he should be fined and placed in prison. Your deal artificially raised prices for all of your neighbors and put your lenders bank at risk.




Info removed-No advertising or soliciting..Bossy4455

I work for a company that does modifications. Be aware, that not everybody can qualify. the guidelines are very narrow. My company has been doing it for 3 years and so has learned how to navigate the different requirements and have learned through trial and error how to negotiate with all the major lenders. The problem now is all the subprime guys are getting into it and they have no clue what they're doing. they promise the world and deliver very little if anything. my company charges 1% plus an application fee. If anyone is interested in learning more call me at phone number deleted per TOS rules...paulmergel

Can anyone give me a name of a legit. MOD company that they have used and have received good results. I have spoken with New Hope Modification and am really leary. I have also spoken with A Fresh Start. Has anyone use either of these companies or can they recommend a company?

Thanks!

I used The Debt Advocacy Center.

i saw an attorney today and i have documents for a loan modification with my mortgage company and I filled out every thing and mail it to them. now I was summons and my attorney told me that he can reinstate the loan back with the new loan modification mortgage and interest rate. Is this true?

I went on a interview for a job the other day, and it was a mod company, and they charge customers one mortgage pay ment for there service. They will refund 75% of the money if they are unable to get you better terms on your mortgage. I guess they figure 25% is for the work they put in to get the better terms for the customer is fair amount to keep.But they tell the customer up front the terms of there service.

I used Credit Law Group they were great and fee's were modest. creditlawgroup.com

National Loan Protection Services

nlpsinc.com

Many homeowners are having loan modification companies negotiate directly with their lenders. If you try to do it yourself the lenders usally walk all over you and nothing gets done. I would highly reccomend not paying upfront fees to any loan mod company. There is more information on the internet, I found a blog with good info loanmodificationresources it has good information. Remember, no fee's upfront, it's like paying a remodeling contractor upfront, your work is not a priority. Good luck!

go to debtend.com It's a new company and i know the guy who is starting it and he really does care. Works super hard and knows a lot. Just a suggestion because I know there are a lot of shady companies out there. So make sure you do your homework on these companies.

With the new hope for home owner????????s federal program you can get refinanced, the interest rate is prime, which may lower your payments, they can also reduce you balance.
If they approve you and refinance you with the new program there are restrictions on splitting the equity when you sale your home be sure to read all of the information provider.
Go to the hope for homeowner????????s link on the Federal Housing Administration. Here is the link, if it doesn't work go to the home page or search "hope for home owner"

http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL


If you can prove you have an income, and will be able to make the new lower payment, you have a good chance of getting refinanced.

Good luck.

has anyone out there used a company called hope now mod? :?

In California, the Department of Real Estate website lists the companies that have DRE "permission" to modify loans... add to this list any licensed California attorney, and that is where you should begin your due diligence when you seek help in California. Other states probably have similar laws, so check with your own state DRE.

My law firm has been getting more and more calls recently from homeowners that were victims of predatory lenders who put them into an unaffordable loan and now fell into the hands of those same people who sold the toxic loans but profess to be saviors... DON????????T BE A VICTIM TWICE!

Do your homework and THOROUGHLY investigate any firm before hiring them to save your biggest asset and the place you call ???????home.??????? These scammers are popping up like dandelions on a freshly mowed lawn. They advertise on the Internet, freeway billboards, radio, television, and print media everywhere. Make no mistake, in many cases, these are the exact same loan officers and mortgage brokers who fleeced homeowners the first time around. After losing their jobs with the crash of the mortgage industry, they have found a new way to make ill-gotten profits from hard-working homeowners through loan modifications.

In California, with very few exceptions (and attorneys are one exception), it is against the law for anyone to take money up front for helping a homeowner who is in default. Don????????t trust a company that begins its relationship with you by breaking the law.

Of course, this is one lawyer's biased opinion, but one based on many distressing calls to my office every day. And, yes, my firm does take cases against loan modification companies who have violated laws. This field is quickly becoming one of the fastest growing sections for our mortgage law firm.

- Paul J. Molinaro, Esq.

I would try a company that does not charge upfront fee's. I have only heard of one reputable firm out of San Diego that does not charge upfront. There is a blog I read that has more info about the loan mod process. loanmodificationresources.tk it is up to date with news and insight. Just be cautious if you do pay upfront because once they have your money there is less motivation to deliver results.

The hope for Homeoners program I mentioned is a federal program. No fees and you go thru the Federal Housing authority,they get you a counselor first, they have gotten more information faster than I had in months,
It is the first step then while you are working on getting the current mortage modified, there are several loans to help disolve the adjustable interest loans..

I say don't go for these mod companies. Try doing it yourself first. Draft a hardship letter that details why you started having trouble with your mortgage payments (e.g. disability, layoff, etc.). Calculate your income and expenses and try to get it close to a zero balance or a small surplus, but do it accurately because lenders can pull up credit reports. If you don't get a positive result by doing it on your own, then look at your state's department of real estate for approved mod companies. Also, if you want to hire an attorney to do this. It's best to have an attorney with real estate background or a broker's license. Ask for a money back guarantee.

I have spoken with individuals from 2 different loan modification orgs. One company charges 495.00 per month, until the process is completed. Another company charges a flat rate of 1625.00. I am simply trying now to determine the legitimacy of each company!

Do NOT use American Financial, Mason Capital Group or Gretchen Fox Associates they are all scams and took a lot of our money and left us in forclosure. They are all the same people just using different names. I am researching Mortgage Modification Legal Network (google it there are many comments) and am thinking about trying that company. They seem to be legitimate.