The Letter I Sent to Senator Feinstein Today...

tvsterling at 21:39 2009-04-04 said:

I agree in principle with the letter but there are real problems. The borrower has no way of telling the sheep from the goats. The TV & internet are rampant with obvious ( & not so obvious) crooks preying on the desperate. The government has neither the time nor the will to regulate. Underwater borrowers were out of time months ago. Permalink

thetruthfromNC at 01:37 2009-04-07 said:

All your story does is prove that those running the banks have no business being in the jobs they have.

There is no need for any loan modification companies, period!

Loans should be modified for one reason only, reduce potiential lose for the bank. So if the bank can recoup equal or greater amount from a modification then foreclosure, then they should do it, if not foreclose.

The problem is even after all we've been thru most banks still don't get it, they just try to be debt collectors. Pay all back payments or we'll take your house.

The solution is for the banks to have to prove they tried to modify and were unsuccessful to get the feds to buy these bad loans, this would force them to work hard to get a modification done, because then it's off their books. Permalink

SteveP at 14:13 2009-04-07 said:

According to the FTC, fee charging loan modification outfits actually INCREASE the likelihood of foreclosure!

http://www.inman.com/news/2009/04/6/regulators-crack-down-mortgage-rescue-firms

One of the complaints specifically reads

"Defendants increase the likelihood of foreclosure by encouraging consumers to pay Defendants’ fee rather than make mortgage payments, and encouraging consumers not to accept work out options presented by the consumers’ lenders." Permalink

Lisa11 at 14:51 2009-04-07 said:

The TV & internet are rampant with obvious ( & not so obvious) crooks preying on the desperate. The government has neither the time nor the will to regulate. Underwater borrowers were out of time months ago.

Lisa11 Permalink