Unfortunately the
magnitude of the mortgage crisis in this country
has also created an increase in scam artists
anxious to defraud the consumers needing help.
Unscrupulous individuals are spending a fortune
on advertisement that is reaching consumers in
desperate need of guidance. Because these
individuals are not regulated, they can make
unfounded promises to lure the consumers into
hiring their organization. Fortunately, if
you take certain precautions you could avoid
being victims of these undesirables.
First of all, any
individual who guarantees a specific result on
the modification of your loan, is lying.
The Rules of Professional Conduct governing the
practice of law expressly prohibit attorneys
from making unfounded promises to the client.
This regulation is based on the fact that the
results of the professional effort are always
subject to certain circumstances beyond the
control of the attorney.
Secondly, insist on
personally knowing the professional that will
have the primary responsibility of rendering
this service. I believe that an interview
is critical because it affords the consumer the
opportunity to ask multiple questions that
he/she must have with regard to the case.
During this meeting you will be afforded the
opportunity to determine whether this
professional is competent and is the most
qualified person to represent your interests.
You should demand a full explanation of the loan
modification process and even though it may be
somewhat complicated, a trained professional
should be able to simplify the explanation.
I am also compelled
to warn individuals against attempting to modify
loans on their own. Even though I have
found cases in which banks have voluntarily
modified mortgage loans under terms favorable to
the debtor, this is the exception, not the rule.
Unfortunately, the majority of the banks are not
that generous with their clients. There is
a distinct possibility that certain debtors may
not qualify for a loan modification. No
bank will agree to a modification if the debtor
is unemployed. The purpose of the
negotiations is to reduce the mortgage payment
to a level consistent with the debtor’s capacity
to pay. If the debtor is unemployed,
his/her capacity to repay is non-existent and
the bank will not agree to reduce the payment to
zero. In this situation, the debtor may
have to explore the possibility of filing a
bankruptcy proceeding or pursuing a short sale.
Last but not least, I
must also warn you that due to the volume of people
requesting loan modifications, the process is a long
and tedious one. Therefore, you must be very
patient insofar as the majority of the banks do not
have sufficient personnel to deal with the avalanche
of applications. It is difficult to determine
how much time it will take to complete the process,
because some banks have more personnel working than
others and it is our understanding that the turnover
is significant. In conclusion, please recall
that this field requires an experienced and
disciplined professional. Be suspect of
individuals that are offering the services at a
reduced price and promise miraculous results.
It is very likely that these individuals are making
promises that they cannot keep.
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