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 BBB ratings. They know not what they speak.
Every reputable mortgage modification firm has national attorneys intimately involved in the ownership and day-t0-day operations. Why? Because the lenders and servicers do everything they can to avoid mortgage modifications; especially affordable and beneficial ones. They can be ethical or unethical. No one is prosecuting them for their non-co-operation, so anything goes. Heres the deal: the Better Business Bureau cannot, and does not, rate or monitor attorneys.
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!”
In fact, Mandelman states that 22 companies have been prosecuted by the Federal Trade Commission. (Actually, that’s not that many. But that’s a subject for another post.)
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 BBB monitoring are way out of date. More non-claimers. Not disclaimers – non-claimers
The BBB 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”.
The Better Business Bureau does not monitor free assistance either, that I know of. Since the free assistance 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. There don’t seem to be numbers on how many of those are truly beneficial and affordable mortgage modifications.
The REST Report has emerged as a phenomenal success in helping homeowners do it yourself mortgage modification. Zero failures out of 4000 submissions.
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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: target="_blank">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 2009-12-19 23:34:20. Republished by Blog Post Promoter
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The Better Business Bureau knows less than you do about Mortgage Modifications – http://t.co/Zan8fye