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Need advice about working with loan mod specialist

Date: Tue, 04/27/2010 - 07:00
Submitted by on Tue, 04/27/2010 - 07:00
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I am working with a company that specializes in loan modifications. I was referred to them by a friend. Before I engage I was hoping to get advice from other DCC forum members about working with this type of company.
They charge $3800 if they are able to help you obtain a loan modification. They define a trial plan as a modification. To me this only solves half the problem.
If all they are able to do is help me obtain a trial modification and then I don't get a permanent modification even if I make the payments, then it doesn't seem reasonable to have to pay the balance if I don't get the ultimate result I am after. Also, what happens if Chase offers a loan mod based on a higher monthly mortgage payment than I am currently paying, which I have heard they do from time to time? Wouldn't be reasonable for me to pay anything for that result.
BTW, they ask for $1500 upon achievement of trial mod with the balance paid over a mutually agreeable timeframe.
The person I am dealing with also made some claims about the mortgage payment range he would be able to help us achieve. He said he thought he could help us reduce current mortgage anywhere between $500 to $1000 per month.
I would also like to see them try to negotiate a loan mod based on principle reduction. The operative word is "try". They are incentivized to get the quickest "result", which would imply that they would not be motivated to get me the lowest payment.
My questions:
1. Is it reasonable on their part to charge $3800 for a trial modification?
2. Is it reasonable on my part to say that I will pay 40% of their total fee for trial mod and the remainder once a permanent mod is obtained?
3. Is it reasonable on my part to state that I will only pay if they are able to reduce my monthly payment by X%?
4. Is it reasonable to ask for references and/or proof of their ability to work with Chase to obtain loan mods based on lower payments?
Would really appreciate anyone's advice/experience.
Thank you!


I would be VERY CAREFUL and research them on line and with the BBB and anywhere else you can! It does not seem right that they should charge that kind of fee for a "trial modification." There are so many scams out there right now! Be extremely cautious or you could lose a lot of money that you certainly can't afford! Are they a licensed lender where you live? That is the first thing you should find out!


Submitted by Frogpatch on Tue, 04/27/2010 - 07:15

Frogpatch

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I am afraid that I have to agree with Frogpatch here. In case the trial mod is referred to the HAMP trial modification where the permanent modified payments remain almost the same as the lower trial payments after the trial payments. But in some states its illegal to charge upfront for loan mod. Only after the mod that the company can charge you. So if I were you I would look into that as well. And one more thing I would like to inform you is that most of the scam organisations are located in India. So just be careful.


Submitted by Anthony Robbins on Fri, 04/30/2010 - 16:30

Anthony Robbins

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You can get your own "trial mod" from your lender. The kicker is getting a permanent mod. I would call your lender directly first. They can't do anything for you that you cannot do for yourself by just calling the lender. However, my belief, as I have gone through this ridiculous process, is it is so dang hard to get a perm modification and I am SOOO glad we did not pay some company to try and get it for us. I believe they are all scams! Don't do it!


Submitted by luckin10 on Fri, 04/30/2010 - 20:56

luckin10

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