A week or two ago I submitted a blistering comment to the Denver Post on a government rehash of the supposed mortgage modification success. Those of us who follow the dismal failure of the HAMP program know better. For any newspaper to repeat the fallacy of the federal government report is and was unfair to the readers. Today, the Denver Post published an article that had actual research in it. That should be a step forward, but the reporting suffers still from a lack of insight. It does however, give me an opportunity to correct the record.
The sure-fire method to getting a beneficial, successful mortgage modification is to contract a national cerified attorney like the ones I represent. The Colorado Department of Regulatory Affairs has severely hamstrung the truly succesful attorneys, but it can still be done.
I read may stories a week on the internet recounting how distressed homeowners get the stalling routine from their lender. Stories like the two recounted here in the Denver Post are legion. Highlighting a few poor souls sells papers and articles. Here are the statistics: National certified attorneys are 97% successful at negotiating beneficial mortgage modifications. Free programs like Colorado’s Mortgage Hotline advertised on RMPBS channel 6 – KRMJ are 10% successful. The post says that around 5 percent of borrowers on a trial period have moved into permanent modification. The question in my mind always is: what about all of those poor distressed homeowners who couldn’t get the attention of their local newspaper or television station to get some answers for them? None of these distressed mortgage borrowers could get through to their lenders. Why do you suppose that is?
The bottom line is that no mortgage holder will ever speak to anyone with real authority at their lender. They are masters at obfuscation, confusion, and subterfuge. Ask yourself, where would these lenders be if they were this inefficient in processing original mortgage applications?
I invite the reader to pull out a calculator and divide the quoted 650,994 trial modifications by the also quoted 3-4 million homes in need of mortgage modification. Now consider the statistics cited above.
Lenders never, ever lose douments submitted by the attorneys I represent. They don’t dare. And our calls don’t get put on hold. The secret that escapes almost every distressed homeowner I talk to is that you don’t need an attorney next to your property. You need an attorney across the street from your negligent, careless lender. That’s what we do.
Blaming fax machines is a red herring. Also, I’d bet the subject of the first anecdote wasn’t offered a new mortgage payment of 31% of her current monthly income. Asking bankruptcy judges to negotiate mortgage modifications is a recipe for disaster. Just imagine adding 3-4 million more distressed homeowners to their caseload. Who really thinks they’re sitting around waiting for cases now? The internet is replete with stories of trial modifications being issued and then yanked out from underneath them, many times with no explanation; only to be followed by illegal foreclosures unknown to the homeowner.
There is solid evidence that mortgage servicers are purposely ignoring mortgage modification applications because they make more money from foreclosure. The author needs to do more research here. Trial modifications are a stalling technique invented by lender/servicers, not the government.
Aldo Svaldi, the author here, does make a significant, accurate statement that I almost never see. Aldo cites Pat Garofalo, an economics researcher with the Center for American Progress Action Fund: A major weakness of HAMP is that it doesn’t hold servicers to firm deadlines or provide for stiff penalties if they fail to comply. The REST Report has never lost in or out of court for a loan modification or short sale.
Ever.
If the distressed homeowner reading the Denver Post article falls for all of these excuses, be prepared to give up your home. If they can see past the fallacies here, call me for professional assistance.
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The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report is best classified as loan modification software, or mortgage modification software. It’s claim to fame is that you use it to calculate Net Present Value exactly the way the banks do, using the same software. It is best used as a do it yourself loan modification or do it yourself mortgage modification. For some reason, loan modification 2010 and mortgage relief 2010 are popular search terms.
This YouTube video says it all. Go here: How to Get A Beneficial Loan Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.
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