I found an interesting article about Loan modifications at HousingWire.comBank of America took 100 random mortgages which were delinquent on their loans. They tracked these loans through the path to loan modification to see how successful the HAMP program is working. What did they find? Out of 100 loans how many do you think successfully navigated the HAMP path? The HAMP Path Before anything can be processed the bank must contact the owners of the delinquent loans. After trying to make contact with these 100 owners, Bank of America had to mark 28 of them as unreachable. They made 110 phone calls to each owner and delievered eight customized letters to them; but received no response. With no response from the owners they were unable…
LOAN MODIFICATION SCAMS
It is sad that during times of hardship, those who cause harm target the vulnerable.
There are a lot of loan modification scams out there. It is important to remember that not all loan modification programs are scams, and not all loan modification companies are scammers. Loan modifications are very valid in our current market. However, to help you identify the legitimate options from the scammers I have a few characters you should watch out for.
Common Scammers to watch out for:
The Disappearing Hero: “I can help you, and all it costs is a small up-front fee.”
The Disappearing Hero shows up to save you from your financial woes. They sympathize, console, and offer hope. They flex their muscles and boast about their
I see advertisements all over the Internet trying to get me to take advantage of the government mortgage relief plan by getting a Loan Modification. It got me curious about the success rate of this program and what the chances are of having a successful Loan Modification.
Alan Zibel, a Real Estate writer for the Associated Press, wrote a report a few days ago that looks at these questions. He made some interesting discoveries. You can read his full report here: Loan Modification So Far. He found that only 4% of homeowners who have attempted to get a loan modification have succeeded. Of course your odds of getting a loan modification largely depends on who your lender is.
To explore this Mr. Zibel looks at the numbers for Bank of America. He first…