There is a lot of talk these days about mortgage modification.  This is especially the case given the economic stimulus that was passed by the Congress earlier this month.  In essence, people are supposed to have the ability to go back to their bank and to renegotiate the terms of their current mortgage note.  Unfortunately, there are unscrupulous companies popping up all over the place promising help but delivering nothing but scams and compounding the misery.  The problem is especially dire in Florida, where the real estate market has taken a beating and where mortgage foreclosures are through the roof.

While legitimate firms can indeed help borrowers wade through the tricky loan restructuring process, housing advocates and state regulators suspect that a large number of businesses offering to help consumers modify their mortgages may be predatory. Some fear that the $75 billion plan President Barack Obama announced last week to subsidize new loan terms for millions of American homeowners will draw even more shady operators to the niche.

In the past two weeks, the Florida attorney general’s office fielded 108 complaints from possible victims of foreclosure rescue schemes. The attorney general has sued about a dozen companies, including Outreach Housing, based in Margate.

Loan modification companies offer, for an upfront fee or monthly retainer, to negotiate with lenders to save homes. The pitch includes assurances that billions are available to bail out homeowners — and that lenders are eager to avoid foreclosing.

In the worst cases, the firms do nothing and pocket the money. Others make an earnest but unsuccessful attempt to help, then refuse to refund clients’ money. Either way, homeowners lose thousands of dollars they could have paid their lenders.

Mortgage modification in the Florida market, can make sense.  After all, a great many borrowers are so upside down where it concerns Loan to Value, that there is no way that they could obtain conventional financing.  For some people this might be their only viable option, but still the consumer needs to be aware.  Unscrupulous mortgage brokers and real estate agents have flocked to this new “opportunity” and continue to wreak havoc.  Make sure you do your homework if you are considering a loan modification, much of the leg work can be done by you, simply by making some phone calls to your current loan servicer and getting informed. 

As always, you can call us to discuss your options.  We will give you the straight skinny on your options and assist you where we can.  If you are considering refinancing your mortgage or buying a home, our rates are always amongst the lowest and our service is second to none.  We’re Florida homeowners and we too share in the angst and the uncertainty of the real estate market and the mortgage marketplace.  If there is a way that we can help you, we will let you know.  If we can’t we’ll be honest about it.  We’re not going to waste our time, but more importantly, we aren’t going to waste your time.  Give us a call and at least allow us the opportunity to try to assist you.