How Much Does a Loan Modification Cost?

In Uncategorized on November 11, 2008 at 5:51 am

$500 for a person without any type of license out of their home…

$2,500 seems to be the average price out there…

$3,000 that advertises on the radio or TV (hitting about 400+ files a month)…

$4,000 at a Law related company…

and my personal favorite…

1% of your loan amount (the more money it is the harder the file? Seesh…).


     So now it’s another late night at the office and I decided to speak out on a few things that are somewhat disturbing to me.  Besides thinking I should really eat before I write this I’ll just ignore the growling for a bit longer.  This industry is a service provider like any other.  You pay for what you get and there are people out there that are trying to sell you everything and give you nothing.

Now, I’ll say this again and again, I’m only speaking about the ones you have to look out for.  There are companies out there that are true blue so if you are one of them… then look away and keep doing what you’re doing.

     As some of you may know or if you are new, then bonjour.  In a nutshell I process for companies out there to do their short sales and loan modifications.  And I stay late to see what I can do to help others and get back to others as quickly as humanly possible.  But today is just too long of a day and I don’t like what I’m seeing. 

     I’m working with a homeowner that is a good woman and her story is a sad one.  Too tired to tell the full story but she is an old recent widow that worked to help others and is paid by the state.  She is in my care so I may have to work her file for free so mark another notch in the pencil before the year is done.  But she was brought to me by a company and has been charged several “G’s” to do her loan modification.  Now, since I was not paid for it, nor it seems that I won’t be seeing that they may have spent all of her money, I had the honor to meet this woman in person.  So it seems that this may be another person that was taken by a so called “Loan Modification Specialist” or “Loan Mod Company.”

     I’m thinking how is a person suppose to know how much to pay for this pre-foreclosure option and what to believe?  You hear me say “buyers beware” but on what guideline does that person have to follow?  The Better Business Bureau or BBB is ok but many are not on it and it does not rate their abilities just their complaints.  And there are mortgage companies that got good ratings and we know where this is going.  Yes, one could say that it goes hand in hand but in my small opinion I don’t believe that a business should pay to be rated.  It should be free.  Now if the BBB was a fair judge then it should be free to join for both the consumer and business and rate the good comments and the bad.  As many complaints as Mc Donalds gets they would be getting the lowest grade level.  But again that’s just me…

     Sorry… now back to the idea of how one will know the price to get to obtain a proper loan modification.  Well, the short answer is well you don’t.  Everyone has the ability to do it themselves like anything in life.  But knowledge and experience is what we all pay for.  Some get a great loan modification by just opening a letter from their bank while others make it thru the system and end up with a sub par one.  Then there are the many who don’t have the time and/or the knowledge need to complete the process.

     Speaking with many people in the banks during what seems to be a never ending loan mod process.  The representatives from the bank inform me that the borrowers can do it themselves.  And like many of the people that ask for my assistance I proceed to tell the representative, when they asked you for help you told them there was nothing you can do so try to short sell your home.  They never have an answer to that comment… truth hurts.

     To pay for this service is does cost money and that is not something to shy away from during the conversation with whom you may work with.  But remember if you have one loan rather than some who have 4 loans against their home then the price will be different.  The one that I love hearing as a sales pitch is a two for one deal.  Now, if they have money to shave large amounts off from their original price for your extra home, which sounds like bargaining produce, then that is not the true price.  And another fun fact is that if they say they are processing over 400 files per month, WOW, ask how many people are working on them because it better be a lot.  I could go on and on but my eyes are blurring and I can’t read what I’m typing anymore.

     I believe that lawyers are expensive but they do deserve to get paid well for their professional service.  But that lawyer should be negotiating your loan modification for that high of a price.  And a processing company should charge about half of that.  And anyone around $500 to me seems like a scary place when you have to pay PayPal or send a check to a home address.  Google the address, hell Google everything:P  I know what I said is somewhat obscure at times but hey, what can I say… I’m working on a file for FREE right now.

     Buyers Beware… it’s Quality not Quantity.  Good luck out there!



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