Need advice about working with loan mod specialist

[onthebrink]

I am working with a company that specializes in loan modifications. I was referred to them by a friend. Before I engage I was hoping to get advice from other bkforum members about working with this type of company.

They charge $3800 if they are able to help you obtain a loan modification. They define a trial plan as a modification. To me this only solves half the problem. If all they are able to do is help me obtain a trial modification and then I don't get a permanent modification even if I make the payments, then it doesn't seem reasonable to have to pay the balance if I don't get the ultimate result I am after. Also, what happens if Chase offers a loan mod based on a higher mortgage than I am currently paying, which I have heard they do from time to time? Wouldn't be reasonable for me to pay anything for that result. BTW, they ask for $1500 upon achievement of trial mod with the balance paid over a mutually agreeable timeframe.

The person I am dealing with also made some claims about the mortgage payment range he would be able to help us achieve. He said he thought he could help us reduce current mortgage anywhere between $500 to $1000 per month.

I would also like to see them try to negotiate a loan mod based on principle reduction. The operative word is "try". They are incentivized to get the quickest "result", which would imply that they would not be motivated to get me the lowest payment.

Would really appreciate anyone's advice/experience.

Thank you!

[CanBreathe]

Much depends upon who your mortgage is with. Have you tried to acheive a loan modification on your own? Almost everyone I have spoken with has been successful to some degree. Also, possibly lowering your payment by $500 to $1000 per month..... what percentage of your current payment is that? 10% or 50%?? Makes a difference. I have done a TON of research on principal reductions and they are near to impossible.

In order for them to acheive the loan mod you have to give everything but your blood type to the loan mod. company, you might as well work directly with the mortgage company yourself, skip the middleman and save yourself $3600.00.

You don't want to pay $3600.00 for just any modification. Also, if you work directly with your bank, you don't have to take their first offer. You can negotiate a bit them.

Just my two cents, but I hope it helps!

[onthebrink]

Much depends upon who your mortgage is with. Have you tried to acheive a loan modification on your own? Almost everyone I have spoken with has been successful to some degree. Also, possibly lowering your payment by $500 to $1000 per month..... what percentage of your current payment is that? 10% or 50%?? Makes a difference. I have done a TON of research on principal reductions and they are near to impossible.

In order for them to acheive the loan mod you have to give everything but your blood type to the loan mod. company, you might as well work directly with the mortgage company yourself, skip the middleman and save yourself $3600.00.

You don't want to pay $3600.00 for just any modification. Also, if you work directly with your bank, you don't have to take their first offer. You can negotiate a bit them.

Just my two cents, but I hope it helps!

Thanks, CanBreathe! I greatly appreciate your advice.

[justbroke]

I did my loan modification without any company. Many of these "loan mod" companies are considered "predatory" themselves, at least here in Florida. I really wouldn't pay anyone to do this.

Now, you can go hire an attorney to do the same thing, and at least you have more comfort in knowing that the attorney's license is on the line if they do anything shady. My real estate attorney charges $1K as a retainer for the first 2 hours and then $100/hr thereafter, for modifications.

[calgirl67]

$3800 to get you a TRIAL mod?

What a joke. You can do that yourself with one phone call.

They are truly preying on the desperate. RUN AS FAST AS YOU CAN...