Here’s an update to this article. The government has announced plans to crack down on the unfair practices of loan modifications:
Count On News 2- Charleston, SC
Below is the original content of my post, dated Nov. 12th, 2008.
I’m a little frustrated. It seems as if homeowners are getting victimized by unconscionable mortgage brokers, yet again.
Please, homeowners, if you’re reading this, and you’re behind on your mortgage, take my advice: call your lender or mortgage servicer directly. Save yourself time, and money. DO NOT allow a “modification specialist” from some boiler room, or fly by night modification company spam you into thinking they will get you a better deal. All they are interested in is getting you to pay an extra third party fee. A fee for something I’m quite sure you’re able to do yourself. (call your lender directly.)
I’m frustrated, because I was beginning to think that those of us who were left, (mortgage brokers), were the ones who have integrity and ethics, who have knowledge of the industry, and who aren’t trying to cut corners, or look for the new angle of how to expose a loophole, or mifle a struggling homeonwer out of a $1,000.
Most of these new “Loan Modification” companies are nothing but chop shops that are playing unnecessary middle men between the lender and the borrower. They will target homeowners who are struggling and spam/call them relentlessly. They are brokers who are looking for easy money, without conscience. A truly dedicated mortgage broker, is one who wants to work with you throughout their entire career. Not for one deal, and not for one easy paycheck.
Yes, there are options for modifications. As of yesterday, (Nov. 11th.), Fannie and Freddie have agreed to alter the terms of mortgages. Fannie and Freddie, operating under a government conservatorship, will target loans in which borrowers are at least 90 days delinquent and have high loan-to-income ratios, officials from the Treasury and the Federal Housing Finance Agency said today at a press conference in Washington. The companies may offer homeowners reduced interest rates and longer terms of as much as 40 years to trim monthly payments.
If you need help with your modification. Contact me: marksmortgage@gmail.com I’m free. I’m hear to offer you advice as an expert in the industry. I promise you, there’s no angle here. If you’re struggling to make mortgage payments, the best solution is to communicate with your lender. Below is a list of lenders and their phone numbers: (if your lender isn’t listed, email me, I’ll try and help out.)
ABM AMRO Mortgage (now citimortgage) 800-283-7918
Beneficial (HSC) 800-333-5848
Charter One 800-234-6002
Chase 800-446-8939
CitiFinancial Mortgage 800-753-3673
Citimortgage 800-283-7918
Countrywide 800-262-4218
Deutsche Bank National Call Number on Mortgage Statement
Fifth Third Bank 800-375-1745, Option 3
First Merit Bank 888-728-9931
GMAC Mortgage 800-850-4622
HSBC Mortgage 800-338-6441
Huntington National Bank 800-323-4695
Key Bank 800-422-2442
LaSalle National Bank 800-783-8900
Mortgage Electronic Registration Systems 888-679-6377
National City 800-367-9305, Ext. 53221
Ocwen Federal Bank 800-746-2936
Option One 866-711-1962
Saxon 800-665-7367
Select Portfolio Servicing 888-818-6032
SkyBank 800-290-3359
Third Federal Savings 888-844-7333
US Bank 800-365-7900
Wachovia Bank of Delaware 866-642-8608
Washington Mutual 866-926-8937
Wells Fargo 877-216-8448
8 comments
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November 13, 2008 at 5:31 am
jambur
In California only approved loan modification shops and law firms can take an advance fee. If you’re considering a company make sure they are approved by the Department of Real Estate: http://www.dre.ca.gov/mlb_adv_fees_list.html.
Also, consider the advantages of submitting your package under the attorney/client privilege so that the documents can’t be used against you if you and your former broker expanded the stated income and now you’re in a pickle.
James Burns, Esq.
November 27, 2008 at 2:16 am
Cyndee Haydon
Mark – this is a great resource for local home owners to get real help and not get fleeced. Great job!!
December 21, 2008 at 5:46 pm
jeff
Is National City willing to do a loan modifications even if I am not behind in my mortgage. I have an 80% and a 10% with them. The total due at this time is $193,000. Unfortunately, that is now the appraised value. I want to ask them to simply lower my interest rate for 6.2% and 7.1% to about 4.8%.
My credit rating is over 700 and I have never been late with a mortgaage payment. Things are tight and I just need a lowerpayment.
What are your thoughts? Do I threaten to give them back the house? I assume they don’t want another bad loan on the books. Am I unrealistic to think they would make a concession to someone who has been a very good mortgage customer?
December 22, 2008 at 2:27 pm
tonymarks
Hi Jeff, I doubt National City will be willing do to anything at this point. We recently had a customer who was told that they (Nat City) couldn’t engage in conversations regarding modifications until the loan was at least 30 days late. Even though the customer had shown an inability to pay the mortgage on time at least twice within 12 months.
February 28, 2009 at 12:40 pm
Mary Contrary
Are homeowners really getting help with loan modifications? If lenders don’t want the properties back then why are there so many foreclosures. Are they just not making reasonable terms or just not modifying? What is the difference between a lawyer backed modification company and just some third party person. I’m finding that the attorney is merely lending his name to the modification company, however, one is not really being represented by an attorney. Will homeowners really see relief when the mortgage help package takes effect March 4, presumably. And, yes, it’s a jumbo loan, so is there no relief for that beleaguered homeowner. Reading that less than 10% of homeowners seeking a modification actually get help. Why is that? Have many more questions on how to pursue. Have contacted lender personally to no avail. Perhaps not sophisticated enough to navigate the system.
March 11, 2009 at 12:39 am
Gina
I also have a mortgage through National City and am trying to get a loan modification. I have suffered a hardship with a new job making less money;however I have been in my home five years and never been late. I have filled out the loan modification request but cant seem to get anyone to return my calls with a status. Do you think they will be willing to work with me even though I have never been late?
April 11, 2009 at 4:55 pm
Bob
I also have a 1st and 2nd with National City. I have called several times and because I am current they really do not want to talk. In my case I’m current but the home is now worth about 400K and falling. The total due is about 640K. Seems like this is becoming a business decision. It will be years before the value will come back. Both loans where full doc with appraised value of 878K at the time. Should I just stop paying to get their attention? Is National City just impossible to deal with? Has anyone had any success dealing with them?
May 8, 2009 at 4:30 pm
dora
How can we get a modification with Countrywide? They never seem to be able to qualify us for their programs? We get different answers each time we call them.