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.
Learn How To Do Your Own Loan Modification Without The Help of a Loan Modification Company
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