December 28, 2009

Loan Modification Scams ~ A bank and government conspiracy

By Timothy Stull (

Every day our firm gets the same phone calls. Clients calling desperate for help with their pending foreclosure situation. They can’t seem to get anything done on their own. “Banks and mortgage servicers love to hold clients over the barrel” says Derrick Spearman of The Mortgage Modification Law Group. “They use the aggressive tcollection tactics to place customers into agreements that don’t make financialy sound sense” Sprearman adds. The real truth is that the banks don’t want clients to have an expert in their corner. That would mean they would have to give legitimate loan modification deal that made sense….one that benefited the customer and not the bank. OK then, so who helps the customer? The governement has stepped in and fundednumerous non for profit agenencies. A noble idea….but a colassal disaster. Loan modificationsare complex in nature and require specific attnention to each case. Government agencies have never been able to attract the proper talent. The proper pay scale is not in place….even in this economy, you can’t get the right guy in the door for 35k per year. This leads us to the private sector. Which has been very controversial from it’s inception. The true facts are that foreclosure defense attorneys have been around forever….the business has just grown greatly in the last few years. The goverment and banks have falsely labeled the entire industry as a scam. They have spent billions of dollars trying to shut the private sector down. TV ads, radio ads and websites stating to not pay for private proffesional help. Wouldn’t this money be much better spent on helping the home owners instead of attacking particular industry? Many home owners are confused and don’t know which way to turn. NOT ALL PRIVATE LOAN MODIFICATION FIRMS ARE SCAMS. Our next blog will concentrate on how to identify a loan modification scam.

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