Still more comment on the mortgage modification mess
I had read about the 60% default rate of mortgage modifications
offered by lenders prior to the HAMP this past March. I had also heard
of reinstatement and forebearance agreements resulting in higher
payments to the distressed homeowner. I had never put two and two
together to point the ‘doomed to failure’ finger directly at the lenders
Mandelman does, and my thanks to him. It is a neverending battle to
educate homeowners of the difference between a real, beneficial
mortgage modification; and forebearance and reinstatement
agreements. They are not the same, even though we knew the
lenders were passing them off as all the same.
In addition to Mandelman’s questioning of real modifications, I would
add a question as to why any homeowner, distressed or not, assume
that the lender is on their side? These poor souls have assumed since
the beginning that lenders would rush to give money back to
homeowners anywhere. Hopefully by now, any given distressed
homeowner understands that the bank is going to do what makes the
most money for them.
When was the last time an IRS agent rushed to the aid of a taxpayer,
distressed or otherwise? The smart, self-protective homeowner is
going to say to himself, “Self, I need to go get me some.” Any free
help one gets at anything is worth just what you paid for it.
Mandelman’s next paragraph is the bottom line for the entire post.
Having received his permission, I quote it in it’s entirety here. No one
could state the overall results of the three mortgage modification laws
of the U. S. Congress better:
“It seems obvious that the 60% re-defaults came from the
unfortunate homeowners who believed the government’s unfounded,
irrational and deleterious advice that people should not hire someone
to help them get a loan modification, but rather call their bank
directly. I say this because there’s not a loan modification firm in the
country that could sell their client that getting them a higher payment
constituted getting them a loan modification. In fact, having
interviewed well over 1,000 homeowners from across the country…
and with all having hired a firm to help them obtain their loan
modification… I’ve never heard of a single instance where a higher
payment was the outcome. Never, not even once. Down right spooky,
don’t you think?”
Mandelman continues on to do very simple math to show that the
mortgage industry’s math simply doesn’t add up. Enough so that any
reasonable reader would suspect the industry of being icredibly
ignorant at the very least. These three paragraphs do little more to
help the distressed homeowner accomplish their own mortgage
modification. One should read them if they need more proof that your
lender absolutely does NOT have your best interest in mind. That you
should trust them as much as any other snake in the grass.
Mandelman goes on to cite Jeff Nielson at SeekingAlpha.com with high
praise. Jeff has nothing good to say about the accuracy government
housing statistics. Jeff goes on to cite foreclosure and pending
foreclosure statistics that should make any distressed homeowner feel
in good company.
This is a crucial point. So many distressed homeowners are left feeling
all alone because of the foolishness fed us by the media that the
homeowner should expect help from a ‘free’ foreclosure prevention
resource, and the isolated homeowner being taken advantage by the
crooks out there.
Currently there is no third party negotiator that can accomplish any
more than you can in obtaining a mortgage modification. No court will
punish a lender for foolishness exhibited by ignoring a mortgage
modification application. It is however, illegal to foreclose while in the
midst of a mortgage modification negotiation. A court will intervene.
The solution is to use the REST Report to show the court and the
investor in your mortgage the Net Present Value, or NPV, of your
house. Imagine knowing the correct conclusion as to the best
resolution of your troubled asset. The REST Report gives you the
same information the bank has in resolving your mortgage
modification or short sale. The problem is the bank won’t give it to
you. You have to go get it yourself.
I am a proud vendor of the REST Report.
Call me at: 970-242-2600
Read more about your Do-it-Yourself Mortgage Modification REST Report here
Email at: info ‘at’ Mortgage-Mod-Monster ‘dot’ com
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