With the wave of unprecedented foreclosures around the country many homeowners are being taken advantage of by unethical, dishonest scam artists out to prey on their misfortunes…Many homeowners needed to look for an option besides foreclosure. The most popular options are some kind of workouts including restructuring the loan and Loan Modification. A Loan Modification basically means asking the lender to change the terms of your mortgage for good. Loan or Mortgage Restructuring is your loan/note bought at a discount and sold back to you on different terms. Either way you must qualify! Because of the latest boom in foreclosures and people needing loan restructuring and Loan Modification, there are a lot of con artists around.
Plenty of companies have sprung up all over the internet and in local cites across the nation that pretend they can help you out, but in reality only want to make quick money without delivering at all. These swindles can hurt your chances of getting your Loan Modification approved by your lender and lose you a lot of money in the process. These companies will play to a homeowners desires, desperation, anxiety and frustrations and tell you all kinds of things to get you to sign up with them. Some loan restructuring and Loan Modification companies will promise you anything, because they don’t care if they can make it work or not. They are only interested in the payment, so they’ll agree to any terms.
You should not have to pay $5000, $3500, $2500 to get your Loan Modification or loan restructured! We, Financial Relief Solutions have been doing loan modifications for 8 years for our standard modest fee.
The predatory loan restructuring and loan modification companies love to charge fees that are in the $1000.00 to $5,000.00 range. That size of a fee is absurd. For example, a bankruptcy attorney is usually limited to a maximum of $3,500.00 to file a Chapter 13 bankruptcy (subject to limited adjustments) in court and most other bankruptcy courts in the country. Comparing the "fee for services" of a loan restructuring or modification to a full blown attorney fee shows you just how ridiculous the amounts they charge are! Most loan restructuring or modification firms employ former loan officers who are now peddling loan restructuring or modifications instead of loans. Some owners of these loan restructuring or modification companies are also former loan officers themselves who are trying to find some method in which to obtain similar fees to what they were charging for the originating of loans. You don't need to be sold, you need real help.
Homeowner’s are in a crisis and the “wolves” are out in force preying on their misfortune looking to make a fast, easy dollar… PLEASE BE CAREFUL!!
We've been Stopping Foreclosures via Loss Mitigation (Loan Modification, Short Sales, Loan Auditing) for the last 8 years, assisting distressed homeowners nationwide with alternatives to foreclosure. Our integrity, honesty, unparalleled service, competitive price, and overall value are why our customers constantly refer us to others to help stop a foreclosure. We are NOT investors, real estate agents or loan officers. We are not here to scam anyone. Beware of "Loss Mitigators" who aren't. We are an Honest, Ethical, Experienced and Professional company that specializes in Loan Modification and Loan Auditing - keeping people in their homes with affordable payments and Identifying "predatory and toxic" loans that can lead to foreclosure. We know what most homeowners are struggling with and we can and want to help them.
We at Financial Relief Solutions are here to tell you that there are NO “magic wands” or “One Size Fits All” loan restructuring or modification programs nor are there any laws “forcing” lenders to comply!
Loan modification is a legitimate, viable option however; it is a complex procedure better left to knowledgeable, industry experienced professionals such as Financial Relief Solutions.
Unfortunately, the complexity of loan modifications is not about “selling” but usually requires important financial and legal analysis that is beyond the scope of a typical loan officer use to selling a loan product. For consumers today, they need help. Most loan modifications are important contracts that not only change the loan terms, such as balance, interest rate, terms but include settlements and recourse ramifications.
Once again, many of the loan officers selling loan restructuring or modifications were the same loan officers who sold the public terrible loan products that led to the financial crisis. Products like sub-prime loans, Payment Option ARMs, Pick-a-Pay loans that led the way into one of the most serious free falls of real estate values since the Great Depression. Reminds me of the old saying:
“Burn me once, shame on you, burn me twice, shame on me!”
It unfortunately is ripe with amateurs looking to make a fast dollar from your misfortunes! You’ve already been ripped off by the banks, don’t get further ripped by these predatory loan restructuring or modification companies!
We feel it is our duty and responsibility to inform, and educate the public with regard to the realities of loan restructuring and loan modification and expose the myths being promoted by the scam artists designed to separate hard working, decent home owners from their hard earned, much needed money.
Below is a list we’ve created of key things to know, and watch out for. We are not necessarily writing this to promote our firm and /or to generate “sales”- Our main intention is to help you as a consumer be better informed, and use this information to make a good decision when you hire a “Loan Restructuring or Modification” company based on factual information instead of “myths” and a sales pitch used by those seeking to take advantage of homeowners who really need help.
A myth that is commonly stated is that loan restructuring or modification companies negotiate with your lender. Yes and no. True negotiations cannot begin until AFTER you Qualify. You must QUALIFY for the lenders (servicers) programs that are already established first. You either do or don’t, they do not have flexibility. In fact, most of the asset management (for loan restructuring) and loan modification departments at a lender have very limited authority and are staffed by relatively low level staff that have very little decision authority. We at Financial Relief Solutions understand that we must get you Qualified and build a solid case for you, Negotiate and then get you Approved.
1. First & foremost, there are NO “magic wands” or instant, universal “fix all” programs available. Do not be misled! Banks are not just passing out 5% “emergency” interest rates, deferring back payments, selling notes at a discount and / or reducing principle balances randomly. Any / all loan restructuring or modifications are based on what makes the most sense financially for your lender to continue moving forward, and is a business decision based on the loan and your specific information! Here’s an example of what we’re talking about: IndyMac Federal has a Website that advertises their new streamlined loan modification service. Here’s what it says in the first three paragraphs:
“The goal of this streamlined loan modification program is to achieve improved value for IndyMac Federal. IndyMac Federal will only make modification offers to borrowers where doing so will achieve an improved value for IndyMac Federal.”
The bank is telling you right up front that they’re happy to negotiate a modification of your mortgage in their best interests, certainly not yours. So Negotiations require a professional, honest company.
Anyone contacting you claiming to have some miraculous ability needs to verify their claims to you in writing via certified case file documentation. This “sales” pitch can easily be confirmed as false by simply contacting your lender, and asking if they offer such concessions.
2. ALL lenders are requiring no less than 24 hours, and up to as long as one week to post THIRD PARTY AUTHORIZATIONS! Usually no company or individual can receive your written authorization & speak to your lender within a few hours. If they tell you this then it may be a SCAM and outright FRAUD so proceed with caution. This can be verified easily by contacting your lender yourself and asking.
3. Loan Modification or loan restructuring representatives DO NOT have access to your lenders “underwriters”. Underwriters have NOTHING to do with loan modification, and are required to carry Errors & Omission insurance through the State / Federal Government. If someone calling you uses this “line” as a sales tactic, hang up. They are not being truthful.
4. Banks are not just selling notes at a discount or “forgiving” principle amounts & passing out 5% interest rates on a whim! Banks are federally chartered institutions and currently are under NO legal obligation (even the current administrations Guidelines to the banks are Voluntary, believe it or not) to negotiate / modify / restructure your loan unless instructed to by a Federal / State Governing authority and / or the Bankruptcy Courts. Banks negotiate to remain profitable and to minimize financial loss. This is where we come in. (FRS) Financial Relief Solutions.
5. Just because someone is a Real Estate Attorney doesn’t necessarily mean they have any more “muscle” (though they should) to modify your loan than a “competent” (key word here) loan modification firm or company. Now we are not knocking attorneys here because there are some good ones out there, but the price can be high! Again, to the best of our knowledge, there are no laws “forcing” your lender to comply. Now you probably have heard about “a Loan/Mortgage Audit” which can make your lender more receptive to negotiating IF violations are found. However this cannot “force” them to do anything, but it is an excellent tool to get the bank to comply with federal and state guidelines and laws and grant you an equitable (fair) Loan Modification. Usually after an audit uncovers some discrepancies the bank is much more flexible in granting the homeowner a much more equitable and fair loan modification. The possible legal fees alone are a major deterrent for lenders who may otherwise want to play hardball and it is an incentive for them to negotiate a favorable modification as opposed to pursuing foreclosure or the homeowner walking away.
Also don’t fall for companies using that “attorney backed” baloney. Are you retaining the services of the attorney or not? Did you sign a retainer agreement?
If someone says they are attorney backed - ask to speak with the attorney. Now what does attorney backed mean? From what we have seen it is usually a junk marketing business being run by someone who is attempting to make themselves look legitimate or trustworthy and may not be able to do loan modifications or restructuring and usually hire or farm out the business to someone else.
Not just “anyone” can successfully negotiate a loan modification or restructure a loan. The procedure can be complex, and requires industry knowledge and experience. This is not a profession for amateurs & should be left to experienced and knowledgeable professionals. Again, it is not unreasonable to request that whoever is calling you prove their experience level.
Many Real Estate agents are now jumping on the bandwagon too. Does being a sales agent truly qualify them to negotiate a loan modification? Maybe…but probably not. There is a vast difference between knowing how to sell a home, and the complexities of negotiating a Loan modification. Again, check their experience and credentials!
Many Home Owners have even been cold called by a former loan brokers offering to help you with your loan restructuring or Loan Modification. There are seminars being promoted all over the country that are attracting loan officers and brokers. Help people get a loan restructured or modification and the broker or loan officer earns a paycheck for arranging the deal. Once exploding-mortgage salesmen are now reinventing themselves as licensed loan doctors. Its odd that many of the brokers who put people into these miserable loans are now charging people hefty fees to get out of the them. Basically they now have a fresh way to make money off of other peoples debt. Nothing wrong with getting paid for actually helping people keep their homes, but don’t rip them off with excessive, high fee’s.
If a company wants to take a large amount of money up front, watchout. First of all, they lose all of their incentive to do anything. Number two, they don’t need a large amount of money up front. To evaluate a case, look over and figure out what you can do, shouldn’t be an expensive item. At most, the cost should be $2,000 at the absolute maximum -- $800 to $1500 is a more reasonable number. The other question is the qualifications of the person doing the negotiating or restructuring. A lot of the people in this business are the people who are in the ‘business of the week’ club. They see something that they think is easy money, they can just not do any work but get people to pay them, and then they just market the heck out of it.
Homeowners have been charged as high as $5000.00 to do a loan restructuring or modification with the midrange around $3500.00. Some are charged a percentage of the loan. When asked by the home owner how much for a restructuring or modification of the loan they are sometimes told that it depends on the mortgage balance. We at Financial Relief Solutions are here to tell you that the same loan restructuring or modification procedures for a $75,000.00 loan is the same as a $1,000,000.00 loan so the fee should be the same. And why so high?
Many are trying to reinvent themselves as heroes of the Mortgage crises by offering loan restructuring or modification services. The Obama bailout plan might as well be a full employment program for them. Even though nothing in the homeowner bailout program prevents them from taking a cut, homeowners should beware of any organization or company that attempts to charge an exorbitant and large fee for restructuring or modification of a loan. The problem is that the majority of loan restructuring or modifications end up resulting as lousy deals for the homeowner because of the inexperience from these newcomers. End result, high fees - bad loan restructuring/modification.
Promising to lower interest rates, modify loan terms, etc. can be technically construed as acting in a mortgage broker / lender capacity (depending on who you ask) and may require licensing in some states. Seventeen states now have laws on the books effectively banning "foreclosure consultants," but most make an exception for mortgage brokers who are now heading some of the largest so-called Loan Restructuring and Modification companies in the country that are taking advantage of good people who need help. However if someone calls you “promising” to lower your interest rate, reduce loan terms, etc, find out if a license is required in your State to discuss mortgage financing. If not, they could be ok. But if required and they are not licensed they could be violating your State’s laws. Being licensed however does not mean that they know how to do a loan modification or restructuring. There are licensed professionals in the mortgage and real estate industry that do not know how to negotiate a good Loan Restructure/Modification. And there are some who definitely can. On the other hand there are professionals who are not licensed but have years of experience because of the field they were or are in and can negotiate good Loan Restructuring/Modifications. And there are those in this category who cannot. We have seen our share of loan restructuring or modification companies that claim to help and seem to be good at cashing checks and taking payments, but not so good when it comes to the actual work of modifying or restructuring loans. Which is why so many scams and con artists are out there in this field. Experience is the key here. Still there are good and reputable people and companies who perform loan restructuring and modifications, licensed and unlicensed with experience, just do your due diligence.
*Loan modification is something any homeowner can do by themselves, for themselves if they have the knowledge, and patience to do so. However many homeowners choose to retain professionals to cut through the “red tape” and relieve themselves of the stress associated with the procedure. Now you absolutely DO NOT have to pay anyone thousands of dollars to do this for you.
Not all lenders have the same policies, and modification programs in place, although the Obama administration is trying to set standards and now have guidelines in place only for lenders of government back loans (what about all those non government back loans). So it is a case-by-case basis, and each situation is unique unto itself. Again, there are no “universal” programs in place unless sponsored by a Federal / State governing authority such as the current administrations attempt but again that is voluntary for the banks that’s why the government has to “pay” the banks with incentives. If it was law they would have to do it regardless.
Banks often will not “waive” back payments and defer them to the end of the loan automatically …this is done on a case-by-case basis & has to make sound financial sense for the bank and the homeowner. The same goes for discounting a note or a shortsale. A solid case has to be built for the homeowner in addition to submitting documents and financial information. If it were as easy as the scam artist’s claim, anyone could do it right?
Your payments are not “automatically” suspended by virtue of hiring a loan modification professional nor is your mortgage/loan discounted by virtue of hiring and paying for a loan restructuring. Banks only suspend or lower payments or discount notes AFTER reviewing or approving a modification or restructuring. DO NOT LET ANYONE CONVINCE YOU TO STOP MAKING PAYMENTS unless you are not currently making them or to send the mortgage payments to them to hold in their “escrow” account!
Finally, DO NOT let anyone prey on your stress/desperation. If it sounds to good to be true, it is. Ask questions of the person contacting you. Get THEIR personal credentials, not just the company they work for! Make them prove themselves, and the claims they are making! DO YOUR HOMEWORK! This is your home, your money, and your future. DO NOT entrust such an important, life-altering decision to someone just because they say what you want to hear and sugar coat things.
And Most Importantly Remember You DO NOT need to Spend Thousands of Dollars for Honest, Legitimate, and Professional Help!
Financial Relief Solutions performs affordable Loan Modifications.
***Recently the Obama administration has seemingly made it easier to obtain a Loan Modification or restructuring. However there is going to be an unprecedented rush for loan modifications, restructuring or note discounting to be processed and believe it or not you still have to qualify. After reviewing the recent new guidelines the administration has promoted it also seems that a large amount of homeowners may not qualify. Not only that, but this is not a mandatory program for the banks and lenders but it is VOLUNTARY! Meaning the lender or bank does NOT HAVE TO MODIFY OR RESTRUCTURE your loan. They are being paid incentives (money) and will take in to consideration if it is more economically feasible to modify/restructure your loan OR to Foreclose, whichever makes them more money!
That’s where we come in. We present and build a solid case for a GOOD and EQUITABLE (FAIR) Loan Modification for you! Not just submit documents! We know key people at most banks and lenders due to our experience over the past 8 years. We can process your request for Loan Modification for you and you can spend time doing other things that you want to accomplish while we get this task done for you! We handle all the paperwork, talk to your lender and negotiate great terms for you! The Obama administration suggests a five year interest rate reduction only and then increases until it goes back to the original rate at the time of your modification. It actually sounds like an ARM! (5-1-1) Obama’s plan is a short term fix. It doesn't do the one thing that would actually help homeowners in the long haul, and that is reduce the amount of principal they owe. We at Financial Relief Solutions believe that this is not effective loan modification. Coercing borrowers to continue paying a mortgage on a home that is hopelessly overvalued and not offering to reduce the principle is predatory lending. We offer to request and build a case for a 30 year or life of the loan reduction AND we ask for a reduction in your PRINCIPLE BALANCE!
And remember you DON”T need to spend thousands to get this done. We make it affordable. With No Hidden Fees and No additional costs!
If you have any questions regarding a possible loan modification, please contact us at (877) 717-6759. Or you may email us at Info@FinancialReliefSolutions.com. We will be more than willing to take your calls and answer any questions you may have and assist in any way we can. We get MANY calls and requests so please be patient and we will return the call or email as soon as we can.
Thank you and best regards,
The Team At Financial Relief Solutions
www.FinancialReliefSolutions.com
(877) 717-6759
(602) 774-4802
(602) 413-5174
“Don’t LET Things Happen To You…MAKE Them Happen FOR You!”
Call us at 877-717-6759 for a FREE consultation with Financial Relief Solutions or visit us on the web at www.FinancialReliefSolutions.com
Financial Relief Solutions (877) 717-6759 Fax # (877) 376-9911
Office: by appointment only:
Correspondence and Mailing Address:
2320 E. Baseline Road Suite 148
Phoenix, Arizona 85042
(602) 774-4802
(602) 413-5174
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