Loan Modification - A legitimate process gone awry.....

"You've heard the saying a few bad apples spoil the bunch" well that's what has been going on with Loan Modifications. As legitimate and desparately needed the process is, the facts are most homeowners require professional assistance to navigate through the process. Sure, many Lenders and Servicers, Media pundits and the like will swear......"Oh - It's not big deal - you can do the process by yourself and for FREE!!!!!!" Yeah! - you can also pull your own tooth out......but who in their right mind wants to take that chance??

Anyway, there are tons of scammers, as a matter of fact the initial company we were affiliated with (even after doing our due dillegence, etc. as you need someone who has the time and proficency to communicate with your lender/servicer and the facts are even in a great day, they are very difficult to reach, which is why you try and align yourself with a company who has the muscle to get inside) was a complete bust or joke, for the sake of a better word. They were horrific and we simply have worked too hard to develop a positive relationship with our clients as well as the market we serve, so after digging, and digging, and getting a better handle of what is needed to effectively and professionally complete this process for clients in need we settled with a new provider.

Anyway, courtesy of Phoenix news

FBI Sees Rise In Loan Modification Fraud

PHOENIX -- Mortgage fraud is on the rise, and the latest cases often involve loan modification, according to the FBI.Loan modification involves reducing the principal amount owed by negotiating with the mortgage company.Julie Halferty, a supervisory special agent in the Phoenix office, said she had never seen as many mortgage fraud cases as she has in the past few months."If it's too good to be true -- it's too good to be true," Halferty said.Valley resident Byron Kyles believes he fell victim to such a scam.Last year, he fell behind on his mortgage, and he had two choices: walk away from his home or work something out with his mortgage company."Our concern was lowering our payment so we could continue to meet it -- be on time and be a responsible homeowner," he said.Kyles contacted the mortgage company as well as a loan modification specialist. He paid the specialist $4,500, but he said his own efforts are what got the loan modified."In my opinion, they did nothing to help us," Kyles said. "The surely did not do $4,500 worth of work to help us."Halferty said homeowners can talk to mortgage companies about modifying the mortgage themselves, like Kyles."(Specialists) don't have any sort of special magic with your bank that you don't have yourself," she said.Not all companies that offer loan modification programs are scamming customers; however, a homeowner will either qualify or not qualify for a modification.