Increasing pressure on the Federal Government to control mortgage modification firms has encouraged the Federal Trade Commission to recommend not allowing up-front fees for professional mortgage modification negotiations. Because of the highly publicized failure of many companies to perform promised mortgage modifications, this would seem to be a great idea. As ususal, hasty and knee-jerk reactions to those few ill-prepared companies, or just plain crooks, will further hamper what is an overall well-intentioned industry.
The newly adopted MARS Rule wound up forbidding upfront fees for mortgage modification companies that were not driven by attorneys. Attorneys were allowed to charge up front fees as they were incurred; but they may not collect all the fees unless the client is satisfied with the end result. This last little part of the rule is driving proficient attorneys out of the mortgage modification business because of the unpredictability of final results. In no other legal pursuit is an attorney held hostage by this kind of restriction. No professional attorney will ever promise a given outcome of a legal process. They cannot be held accountable for other humans (the protagonist in any legal dispute, and the arbitrator) to not use good sense.
The banks will use their illegal ‘trial modification’ stalling techniques to ensure that mortgage modification is not a profitable endeavor. We already know that the non-profit counselors are essentially inneffective in obtaining beneficial, affordable mortgage modifications. The banks and un-informed public will then rise up and blame the President, US Dept. of Treasury, and federal government in general for the failure of the Home Affordable Mortgage Plan, or HAMP.
A little perspective might help. Imagine going to Wal-Mart and promising to pay for an item three months from now, after you were sure it would perform as promised. The similar much-publicized law passed last summer in California in June has done little to stem any crooks or other ill-prepared mortgage modification firms. Why? Because almost all the billable negotiations are performed within a week of modification application anyway. The reason a permanent mortgage modification takes so long is directly the responsibility of the banks doing everything they can to avoid negotiating. Why should a professional organization be held hostage by a ne’er-do-well mortgage servicer?
The upshot of all this is the spectacular results of the REST Report. We are operating at 100% efficiency – no complaints that we know of. The REST Report uses the bank’s own software to calculate a mortgage modification or short sale. Those are the only two options because those are the only two beneficial solutions for mortgage investor and distressed homeowner.
For those readers that prefer YouTube videos, try this: How to Get A Beneficial Mortgage Modification Now
I read every comment. Please use the Comment box below and tell me what you think.
Read it here
Comment to the FTC at:
http://public.commentworks.com/ftc/MARS-NPRM
tags: do it yourself loan modification, do-it-yourself short sale, mortgage modification, mortgage lender fraud, mass joinder lawsuit, loan modification colorado, loan modification nevada, loan modification arizona,loan modification new mexico, loan modification california, loan modification georgia,federal trade commission, mars rule,up front loan modification fees,
{ 4 comments… read them below or add one }
All well and good, but we are getting more and more information that the banks themselves may be committing fraud while they attempt to foreclose. And the FTC can’t touch them! We need more stories at fraudforeclosure.com so we can take the fight to them!
You’re absolutely correct. Banks foreclose on mortgage modification negotiations, which is illegal. Servicers make more money on foreclosures, so they push those. They tell distressed homeowners to miss payments, and then tell them they don’t qualify for a mortgage mod. Bank of America discourages investors solutions – our only real hope. Call or write Mandelman and join forces with him as he goes to the FTC. Mandelman’s RSS feed is at the bottom of my blog, http://www.mortgage-mod-monster.com
By visiting your webpage, the first impression for me is strong. I can’t imagine when and why you share this great topic but don’t spread it with social bookmarking. This information can be published as reference in online journal, or even in press release site. An early improvement in your site is great, can give us more time in your website. Would you mind if I capture several screenshot as my collection, because I’ve joined several researches? General purpose for me is to tell you about this discussion. My critical question for us is the resource that you have used to manage this site. In order to make great discussion, you are great because you post new topic in several areas. But, I suggest in giving personal opinion, please refer to big or authority sites, I am sure you will be fine in giving past or future experiences. In my environment, I am sure your capability to enrich people can be strong advantage for your future.
The Federal Trade Commission and fear of upfront mortgage modification fees – http://t.co/YTxlEmUV