I think it is illegal to charge an upfront fee for a loan mod UNLESS you are an attorney. (I guess then it is OK because you are charging for your time, and are supposed to know what you are doing)
I think that real estate people must clear with the DRE an “advance fee agreement” to try a loan mod and charge upfront.
There is no guarantee that a mod will be sucessful.
Advance fees can be $500 to $1000 and up to $5000 more if successful.
It’s ripe for fraud. Preying on folks who want to believe that they will be saved.
For most people underwater, I think they just need to face up to reality that they cannot afford it.
If you want to stay, then stay and pay what you agreed to.
If you owe $600K on a stucco box that is worth $400K today (and won’t even really sell for that anyway) the lender might lower your payment for ONE reason… THEY DON’T WANT YOUR HOUSE.
They will have to actually accept a huge loss, instead of just a non performing loan..
Right now it is the occupants problem , not the lenders.
I’m willing to bet that behind closed doors they are saying “I cannot believe that these people actually want to stay there”
I point out to many people that if you owe $200K more than the house is worth, you own absolutely NOTHING today. You certainly wouldn’t buy the abode for what you owe on it right now, and it’s highly unlikely it will go back up anytime soon.
(Like 10-15 years+++)
Foreclosures are not the problem , they are the solution.
Until everybody grows up, admits they made a mistake, realizes that the govt allowed/created this housing bubble to happen (because it was good for the economy) and moves into something that they can afford, this housing problem isn’t going to end.
I understand that there is emotion and ego and pride involved, so what, get over it. Your friends will still like you after you get foreclosed on if they are really your friends.
Who are people trying to impress by living beyond their means ?
Where did this entitlement attitude come from ??
(OH YA, the govt, I forgot.. the ones that are going to fix this mess)
People who have been responsible that are on the sidelines will buy the houses at prices that they can afford and the market will reset.
Houses wont sit empty, and they arent going to be burned down, (unless the riots start for saving people who lied to get loans and not helping the others)
We just need to play musical chairs with houses.
Houses wont be empty, people will have places to live, some egos will be bruised, and the problem will be solved. On with foreclosures!
