I had information as to how crooked the Better Business Bureau was a year ago. The bulk of this article was posted last December 2009. I had witnessed their chicanery first hand. In light of the expose aired by ABC News With Diane Sawyer on Friday November 12, 2010; I saw it as timely to republish this article.

Briefly, the Better Business Bureau has been exposed to charge for their ratings grades. The grade was bought and paid for. And to hear ABC News view, it was extortion.

There is a disconnect between the records of the Better Business Bureau and the mortgage modification industry that confuses consumers who bother to do their own due diligence. The more research they might do, the more confounded they would be. Here then is a primer on why the Better Business Bureau is NOT the place to do your research if you are a distressed homeowner.

Case-in-point: On Nov 17, 2009 the Denver Post published a story about a mortgage modification company that took up-front fees and then disappeared. The Better Business Bureau rated them a B+. Ignore the Better Business Bureau ratings. They know not what they speak.

When the distressed homeowner googles a mortgage modification firm through the Better Business Bureau, they generally get a window in the upper right hand corner of their screen that states:

“Company Rating F
Our opinion of what this rating means:
We strongly question the company’s reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law’s licensing or registration requirements, their complaints contain especially serious allegations, or the company’s industry is known for its fraudulent business practices.”

I call the researcher’s attention to the last sentence: “The company’s industry is known for its fraudulent business practices.” You’d have to have lived in a cave for the past year to not have seen all of the negative press about crooked mortgage modification firms. As in, “Duh!”
And by the way, you wouldn’t think the banks had anything to do with that, would you? With the current Foreclosuregate scandal, I wonder what rating the top banks paid for.

So, every mortgage modification firm gets an F because of industry reputation. (except one, by the way. The owner of the Better Business Bureau in fact owns his own mortgage modification company. Guess what grade they get.)

My point is that the industry gets the ‘F’ rating as much as the particular firm might. Even the giant non-profit Neighborhood Assistance Corporation of America, which is led by Bruce Marks, has an ‘F’ rating with the Better Business Bureau.

In another, less prominent window is this non-claimer: “This company is not accredited by the Better Business Bureau. This fact does not disparage the company in any way.” Even closer examination will reveal that the dates of any Better Business Bureau monitoring are way out of date. More non-claimers. Not disclaimers – non-claimers, or un-claimers.

The Better Business Bureau review goes on: “As of July 1, 2009, the California Foreclosure Consultant Act was enacted to safeguard the public against deceit and financial hardship, and to encourage fair dealing in the rendition of foreclosure consulting services. With certain limited exceptions, it is now illegal to operate as a foreclosure consultant in California without completing registration and bonding requirements. Foreclosure consulting companies must register with the Justice Department, and post a $100,000 bond with the secretary of state for a period of two years. If the company violates the law, a court may order restitution to victims out of proceeds from the $100,000 bond. Companies who fail to comply will be subject to criminal penalties of up to a year in jail and fines ranging from $1,000 to $25,000 per violation”.

I have a copy of this state bond if anyone is curious.

How a distressed homeowner researches the Federal Trade Commission is beyond me. But then, given the recently enacted Financial Reform Bill, the point is moot.

The Better Business Bureau does not monitor free mortgage assistance, that I know of. Since the free counseling is connected with the given state, that probably is no surprise. The conclusion here is that you get what you pay for. Currently the free assitance centers have approximately a 10% success rate in negotiating mortgage modifications, as publicized by the RMPBS television station KRMA in Denver, Colorado. There don’t seem to be numbers on how many of those are truly beneficial and affordable mortgage modifications.

Currently, there is no advantage to contracting a third party to negotiate a mortgage modification, so the Better Business Bureau and their ratings are irrelevant. As is the issue of ‘up-front fees.’ A third party mortgage modification negotiator can’t accomplish anything you can’t by yourself. The REST Report uses bank software to calculate an unbiased Net Present Value; which is what the mortgage investor (not mortgage servicer) uses to calculate the best solution to a distressed mortgage – mortgage modification or short sale – never foreclosure. By submitting an unbiased REST Report, the homeowner bypasses the mortgage servicer and essentially presents those unbiased calculations directly to the mortgage investor.

I am a proud vendor of the REST Report. I also have the best Hardship letter template anywhere. Proven to hold the attention of the ‘overworked’ mortgage underwriter.

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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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Originally posted 2010-11-13 10:50:10. Republished by Blog Post Promoter

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