March 25, 2015

PREDATORY ACTION WITHIN LOAN MODIFICATION CONTRACTS

By Timothy Stull (http://www.fresh-start.co)

Make no mistake about it, the level of abuse on home owners has hit new highs when it comes to loan modifications.  Distorted account balances, padded escrow accounts, unnecessary balloon payments, missing amortization schedules, false or no truth in lending statements, phony trial plan offers and incorrect math calculations run wild within the industry.  These particular modification offers actually put the home owner in much worse financial position for the long run.  Most of the executed plans will fail over time, ultimately leading many into foreclosure and bankruptcy.   All of these actions stem from the greed associated within the mortgage servicers (aka collection agencies).  Though the pool of servicers / collection agencies has expanded greatly over the last 2 years, Ocwen, Nationstar, Seterus & Caliber remain at the forefront.  Since the delinquency level of distressed mortgage debt has hit extreme levels, these collection agencies seek more aggressive means to report higher profits to their investors.  The business of collecting on severely delinquent mortgage debt (3+ years late) is a huge money machine.  The machine is fueled with large hedge fund investment dollars that in turn hire aggressive bill collectors and attorneys to seek maximum profit.  There is absolutely no incentive at all for them to offer a fair loan modification deal that will help a home owner avoid foreclosure.  Additionally, since they do not have are reputation to protect, they will get downright nasty with collection efforts.  Typically, when a loan modification deal is offered to the “average joe” it is littered with serious predatory discrepancies (described above).  These particular predatory discrepancies add serious value to your debt in the debt in the open market.  It allows the current mortgage servicer / collection agency to sell the debt at a premium in the open market, once a solid payment history is established.  The greed that surrounds the debt trade within the mortgage servicing sector is enormous.  It has also picked up a lot of steam in recent years, since mortgage investors seek high profits as they are unable to grab them in the dying new mortgage market.  Overall, this quickly developing industry that focuses on greed, deception and abuse spells huge trouble for struggling home owners.   Without a strong defensive strategy coupled with experienced representation, home owners are doomed when they face the challenges of distorted loan modification offers.  Our firm has handled thousands of cases relating to this issue and we do offer free advice on this topic ~ 877.297.7011.

 

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3 Responses to “PREDATORY ACTION WITHIN LOAN MODIFICATION CONTRACTS”

  1. Raj mehta Says:

    need to settle second heloc . Current on 1st with BoA went through loan modifications 2 times.
    After 1 st modification boa charged off heloc which was originally funded with $300k with interest only
    Boa sold this debt to real time resolution and we want to pay off 30 k by taking loan but they want all equity … We have no money. 378-4453

  2. Raj mehta Says:

    need to settle second heloc . Current on 1st with BoA went through loan modifications 2 times.
    After 1 st modification boa charged off heloc which was originally funded with $300k with interest only
    Boa sold this debt to real time resolution and we want to pay off 30 k by taking loan but they want all equity … We have no money. 378-4453

  3. Betty Smith Says:

    I 2009 I got a very bad MOD from Litton Loan now servicer Ocwen. I found out in 2013 that my loan was reamortized over a 40 year period with a balloon payment due at maturity (2029)with over 65% of original loan still due. Litton did not inform us of the true terms of the MOD and forged some of the MOD documents, like balloon addemdum. I have filed complaints with all federal and state agencys with no results. I have tried everything to get Ocwen to do something about this and they refuse. I am basically paying rent and will lose my home when it balloons, plus I can’t build equity because I am paying mostly interest for 16 years. I have never missed a payment and not in default.

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