Pleasant Grove, Utah (PRWEB) March 4, 2009
There is some good news regarding loan modification, Fannie Mae and Freddie Mac will modify loans under Obama's plan. Although Loan Modification is a viable way to lower your payments, beware of loan modification scams. FBI is aware of this growing problem of loan modification fraud, they have not been able to act quickly enough to stave off the fraud wave.
Against a backdrop of record-low new home sales and ballooning losses from foreclosures, Housing Secretary Shaun Donovan told lawmakers Thursday that the lending industry is set to launch the Obama administration's $75 billion foreclosure prevention program next week. Donovan said "we expect to see large numbers of loan modifications happen very quickly," and hopes it would cause foreclosure rates to drop as soon as April.
Donovan said the plan will allow "borrowers with big debts and unaffordable mortgages to have their home loans modified to lower the monthly payment", even if they are not in default. Borrowers who owe up to 5 percent more than their home's current value will be able to refinance, if their mortgages are held by mortgage finance companies Fannie Mae or Freddie Mac. At the same time, loan modifications will be available for borrowers who owe up to 50 percent more than their home's currently value. Donovan said "we expect to see large numbers of modifications happen very quickly," and hopes it would cause foreclosure rates to drop as soon as April.
At the same time the "FBI is aware of the growing problem of loan modification fraud", they have not been able to act quickly enough to stave off the fraud wave. They report that they have over 1,500 mortgage fraud investigations over the last month.
Sean Walker CEO of HomeSaversUtah (http://HomeSaversUtah.com). and President of Good Neighbor Loans, LLC, (http://gnmloans.com), emphasized there are several things which a homeowner should be aware of when working with a loan modification company.
· Be sure they are a licensed loan broker in Utah, as is required by law.
· Some companies have huge ads, even on television, however they are often lead-generating mills that sell your information to other companies hungry for your money, at no benefit to you.
· Claiming they are experts with years of experience. This loan modification industry and crisis has only been around for at most two years. Anyone claiming they've done this for 20 years should definitely be questioned.
· Claim they have established insider relations with all the lenders. Some former brokers may have some connections that may be helpful, but many of these companies move through the same customer service channels that you would.
· Not all loans can be modified and the home owner should not pay a fee until a evaluation has been performed by the loan modification company before the home owner agrees to go ahead with any actions. as well as have a complete understanding of what actions the loan modification company will take.
Many so called loan modification companies, make promises and do nothing. That's why HomeSaversUtah.com (http://HomeSaversUtah.com). keeps a detailed log of all the actions it takes in the clients behalf and that listing of who, was contacted, dates and times. These are all provided to the client through a secure web site, which only the individual client can access and is never shared with third parties.
The client always knows exactly, what has been done regarding their loan modification, Before any fees are paid a free evaluation is performed to assess the home owners specific situation. The options, possible outcomes and actions to be taken are all described by HomeSaversUtah.com (http://HomeSaversUtah.com) before any fees are paid or agreements signed. HomeSaversUtah.com also provides self help information on their web site and encourages those in need to educate themselves with the free self help information (http://homesaversutah.com/resources.html).
Senior Loan Modification Counselor