Loan Modifications Covered by New York Times

Posted by Justin McHood on July 13th, 2008

It appears that the concept of Loan Modifications is gaining momentum.  In today’s New York Times, they ran a feature story on loan modifications and referenced LoanSafe and Moe Bedard.

Some highlights in the story about LoanSafe and quotes from Moe include:

  • LoanSafe charges a flat fee to analyze loans and according to Moe, they have found problems in at least 80 percent of the 300 or so mortgages they have examined.
  • Among the problems found were notary problems, Truth-in-Lending-Act (TILA) violations and Real Estate Settlement Procedures Act (RESPA) violations.
  • One common violation occurs when the interest rates or fees change between the time a borrower initially receives a cost estimate on the mortgage and when the borrower actually closes the loan.

According to Moe:

“When presented with these findings, most lenders and servicers quickly agree to a loan modification and many of the deals that my firm has arranged have an initial interest rates in the 3 percent range.”

Hmmm.

So the concept behind LoanSafe is that they have their team of lawyers examine the initial and closing paperwork of the person’s loan — find violations of law and then strong-arm the lender into giving the homeowner a loan that they can afford?

Sounds kind of like a modern-day version of Robin Hood to me.



July 13, 2008 | Filed Under Arizona Home Financing Options 

comments

2 Responses to “Loan Modifications Covered by New York Times”

  1. Was Your Short Sale Rejected? Do You Owe More Than Your House Is Worth? : Arizona Mortgage Team :: Arizona. Mortgage. Experts. on August 27th, 2008

    [...] last option left — Loan Modification.  We have talked about the concept of loan modification before (more than once), but here is a video that does a nice job of sharing one person’s [...]

  2. FHA Hope For Homeowners Program : Arizona Mortgage Team :: Arizona. Mortgage. Experts. on September 23rd, 2008

    [...] if you are interested in participating in the Hope for Homeowners program and you end up getting a loan modification or loan workout from your lender. addthis_pub = [...]

Leave a Reply




  •  
    1. (required)
    2. (valid email required)
    5. Best way to contact you?
     

    cforms contact form by delicious:days

    •