Loan Modification Companies, Why Doesn’t Government Want You To Use Them

One of my latest articles suggested that the best advice you can get on loan modifications is free and supplied by the Government and that the Government has a vested interest in loan modifications to work, that is to stop families from losing their homes. This elicited an anonymous comment that I feel can be helpful as I believe it touches on many of the issues people are thinking about. The comment is copied in full even though some of the sentiments expressed may have hurt my fragile ego. The readers’ comments are in italics.

“The best advice comes from the government and they have a vested interest in your success.” Really? The best advice comes from the government???? Based on the terrible advice that you are giving I can believe that you may actually believe this but that does not make it true.

Yes, I agree Obama wouldn’t lose sleep over me foreclosing on my home, but I do think he wants this credit crisis to be behind him, to get re-elected and because most people like to do well in a job, few of us like to fail miserably. This does not mean I think he will succeed. I personally believe the whole problem we have now is not so much a mortgage issue, as a credit culture crisis. In many cases mortgage payments are one of the smaller loans borrowers have to worry about. Think credit cards, car loans, refinance mortgages, etc…

The government is not littered with the sharpest minds in America. It is a bunch of people who are trying to get re-elected. Do you really think they are looking out for my best interest? Did you ever stop to think that the banking lobby has the politicians in their back pocket? When you call HUD all they do is give you the number at the bank to call and answer some basic questions. Wow, what a great service they provide.

Again I would have to agree that not all government employees have a Mensa membership card in their wallets. And yes, I am sure the banking lobby has plenty of leverage on this government, just look at how quickly the Government bailed them out when they needed it.

However HUD does provide more information than your banks number. Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services. http://www.hud.gov/offices/hsg/sfh/hcc/fc/

However if you feel it is all a big conspiracy and that all these counseling agencies are out to get you and don’t want to help you with your mortgage then it might be a good idea to get your own loan modification “guru”. You know what though? Not all of them are the brightest minds of America either.

Have you ever spent 6 months getting the run around from the bank while you stress out over the possibility of losing your home? Who has the time or mental energy or mortgage knowledge to negotiate with the banks? Do people know how to calculate their DTI or surplus/deficit? Did you know that most lenders have guidelines that are based on the monthly surplus/deficit and if you give them numbers that fall outside of those guidelines at any time during the 3-6 month negotiations or during the 3-6 month trial modification you will be DENIED?

Can you imagine how somebody would feel if they went through hell for 6 months and then when they went through the final financial review after the trial mod they got denied because they got a bonus check or saw their income dip or had an unexpected expense pop up? Who is going to counsel them on how to manage their finances throughout this process and hold their hand in a great time of need… the government….yeah right. At least they have your great articles to fall back on. If you truly want to help people please educate yourself on what you are writing about before you start writing. Which bank do you work for?

I think the key of the issue is that our friend feels (for completely altruistic reasons I’m sure) that loan modification agents are the way to go. We are too ignorant to work it all out ourselves, and the Government is not to be trusted. That is a feeling many share, which is why they will pay thousands of dollars to a loan modification agency to do the work for them.

It is true that for many of us the paperwork required is just too much to deal with when we have work, family and a hundred other things on our mind, but just because you pay for that help doesn’t mean it is going to be better.

You need to decide if loan modifications are worth the trouble at all, some just see them as a trick banks play to get 3 extra months out borrowers.

You also need to decide if paying for a loan modification agency or using a free government issued counselor is the smart thing for you.

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Loan Modification Companies, Why Doesn’t Government Want You To Use Them

One of my latest articles suggested that the best advice you
can get on loan modifications is free and supplied by the Government and that the Government has a
vested interest in loan modifications to work, that is to stop families from
losing their homes. This elicited an anonymous comment that I feel can be
helpful as I believe it touches on many of the issues people are thinking
about. The comment is copied in full even though some of the sentiments
expressed may have hurt my fragile ego. The readers’ comments are in italics.

“The best advice
comes from the government and they have a vested interest in your
success.” Really? The best advice
comes from the government???? Based on
the terrible advice that you are giving I can believe that you may actually
believe this but that does not make it true.

Yes, I agree Obama wouldn’t lose sleep over me foreclosing
on my home, but I do think he wants this credit crisis to be behind him, to get
re-elected and because most people like to do well in a job, few of us like to
fail miserably. This does not mean I think he will succeed. I personally
believe the whole problem we have now is not so much a mortgage issue, as a
credit culture crisis. In many cases mortgage payments are one of the smaller
loans borrowers have to worry about. Think credit cards, car loans, refinance
mortgages, etc…

The government is not
littered with the sharpest minds in America.
It is a bunch of people who are trying to get re-elected. Do you really
think they are looking out for my best interest? Did you ever stop to think that the banking
lobby has the politicians in their back pocket? When you call HUD all they do is give you
the number at the bank to call and answer some basic questions. Wow, what a great service they provide.

Again I would have to agree that not all government employees
are Mensa members. And yes, I am sure the banking lobby has plenty of leverage
on this government, just look at how quickly the Government bailed them out
when they needed it.

However HUD does provide more information than your banks
number. Foreclosure
prevention counseling services are provided free of charge by nonprofit housing
counseling agencies working in partnership with the Federal Government. These
agencies are funded, in part, by HUD and NeighborWorks® America. There is no
need to pay a private company for these services. http://www.hud.gov/offices/hsg/sfh/hcc/fc/

However if you feel it is all a big conspiracy and that
all these counseling agencies are out to get you and don’t want to help you
with your mortgage then it might be a good idea to get your own loan
modification “guru”. You know what though? Not all of them are the brightest
minds of America either.

Politicians tell people not to use loan mod companies
because the banks don’t want people to help them out. Wouldn’t it be great if the person that was
suing you for something was representing them self and you had a great attorney
to help you out?? Have you ever spent 6
months getting the run around from the bank while you stress out over the
possibility of losing your home? Who has
the time or mental energy or mortgage knowledge to negotiate with the
banks? Do people know how to calculate
their DTI or surplus/deficit? Did you
know that most lenders have guidelines that are based on the monthly surplus/deficit
and if you give them numbers that fall outside of those guidelines at any time
during the 3-6 month negotiations or during the 3-6 month trial modification
you will be DENIED?

Can you imagine how somebody would feel if they went through
hell for 6 months and then when they went through the final financial review
after the trial mod they got denied because they got a bonus check or saw their
income dip or had an unexpected expense pop up?
Who is going to counsel them on how to manage their finances throughout
this process and hold their hand in a great time of need… the
government….yeah right. At least they
have your great articles to fall back on.
If you truly want to help people please educate yourself on what you are
writing about before you start writing. Which
bank do you work for?

I think the key of the issue is that our friend feels (for
completely altruistic reasons I’m sure) that loan modification agents are the
way to go. We are too ignorant to work it all out ourselves, and the Government
is not to be trusted. That is a feeling many share, which is why they will pay
thousands of dollars to a loan modification agency to do the work for them.

It is true that for many of us the paperwork required is
just too much to deal with when we have work, family and a hundred other things
on our mind, but just because you pay for that help doesn’t mean it is going to
be better.

The truth is that nobody can really guarantee you anything.
Loan modification agencies can’t guarantee success, although they do have
vested interests in delivering the goods, because it is the bank that approves
or drops the loan modification application. You need to decide if loan
modifications are worth the trouble at all, some just see them as a trick banks
play to get 3 extra months out borrowers. You also need to decide if paying for
a loan modification agency or using a free government issued counselor is the
smart thing for you.