It is no question that a big reason the housing crisis started is from unscrupulous lenders lending money to people with no capability of paying those loans back. Stated income, no doc loans, no asset loans etc, got a lot of people in trouble, and made the State of Colorado stomping grounds for every state in the country to market to use, these bad loans. It is no surprise Colorado has one of the most complex licensing requirements for mortgage brokers now, and that it is so strict, that many other states are copying our model, because it is so good.
But another scam has popped up, and it is being marketed to consumers as a way for them to save their home through loan modification. These net branch like mortgage companies are popping up everywhere and charging these people who are delinquent on their mortgage anywhere from $1000 - $3000 as a fee for them to rework their loan. Basically all they do is take your income and asset information, present it to the loss mitigation department, and if they agree to a loan workout, you get to keep your home, for now. Obviously you need to make your payments, and will need to make a few payments under a special forbearance to qualify for a loan modification, however what no one realizes is, you can do this for FREE! Yes free, either by calling your lender or speaking to loss mitigation department or by calling the HOPE now alliance, you should not be paying anyone a DIME!
I have spoken to a few loan modification companies, and their pitch to me is, that these people aren't paying their mortgage for months, so they have this money earmarked somewhere. What's a $1000-$3000 to me, to help them save their home, if they haven't been paying their mortgage anyway. The bottom line is when there is blood on the street, someone is making money. If there is ever a fear or void in this market, you bet someone will be there with a quick fix to rip you off. I am not saying all loan modification companies are bad, but what I am saying is that borrowers need to get involved with their loans, and call their lenders. If they are afraid to call them, and get a mailer in the mail, it is easy for these con artists to hustle a couple of grand from them. Buyer beware!
If you have any questions or would like the telephone numbers of legitimate loan work out companies for FREE, please give us a call! Brian Quigley is a senior loan officer for Nations Funding Source in Denver, CO and has been in the mortgage industry for five years, and has closed over 600 mortgages. You can learn more about Brian and Nations Funding Source at http://www.brianquigley.com |
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