LOAN MODIFICATIONS
After having been involved in several hundred foreclosure cases, it has become very apparent that loan modifications are a scam. The government encourages loan servicers and borrowers to play the game of processing loan modification documents through the HAMP program. The loan servicers get paid to process those papers, and process them they do! They will lose your paperwork 13 times (and blame it on you) - and get paid by the government to re-process those papers over and over again. Ultimately, you may be one of the 4% of people who are approved for a trial program. But, even with timely payments, you will likely be rejected, without any detailed explanation at all. And, if you are one of the tiny number of people who get a permanent loan modification, chances are excellent that your "deal" isn't any kind of a deal at all.
In my experience, I have had only one person get a loan modification. That loan modification only came after the client was denied a HAMP modification, without cause and without any justifiable reason whatsoever. The stated reason was her income wasn't consistent enough. It wasn't a questionable case, either. The client is an elderly widowed woman on a fixed pension. We then filed a lawsuit in state court under estoppel theories. The bank removed it to federal court, where the bank's litigation costs expanded significantly, and then after a year and a half, they agreed (last week) to go ahead and give the client the loan modification and pay us our attorney fees. Clearly, no one at a management level is in charge, because if they were, they would have fired the person who directed that this case be litigated.
Please don't contact us to see if we will help with a loan modification. They are scams and the government is part of the problem - not the solution.
Sincerely,
George Gingo