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July 17, 2011 The recession has hit families hard, and many Americans are willing to try just about anything to escape from burdensome loan payments, including their mortgage. But, some companies offering a way out are scammers in disguise, whose services often leave already-struggling individuals in a far worse predicament.Avoid Foreclosure Rescue Companies

They go by many names, such as loan modification companies, foreclosure rescue services, or mortgage relief providers. But, one thing these services generally all have in common is promises that never seem to materialize.

Seniors will have fewer avenues to secure steady retirement income, now that the two largest lenders in the reverse-mortgage business have decided to discontinue offering the product.

Wells Fargo, the nations top reverse-mortgage lender, announced earlier this month that it will stop originating the loans, citing inflexible government regulations and concerns that home prices could continue to sink. Wells Fargos announcement comes on the heels of Bank of Americas move to exit the market earlier this year. As of April, the two banking giants issued nearly 44 percent of reverse mortgages, according to research firm Reverse Market Insight.

- Before you decide to walk away from your mortgage, consider the real, long-term costs.With over eleven million Americans owing more than their houses are worth, its no surprise that many homeowners are considering walking away from their mortgages. Its especially tempting if you are out of a job or experiencing other financial difficulties and struggling to make bloated monthly payments.

With so many people in trouble, even the social stigma of ditching your financial commitments isnt as great as it once was.

The promise made by a mortgage company in San Diego could not have been more blunt. “Accredited Home Lenders offers an unusually broad line of subprime mortgage products for wholesale mortgage brokers,” the company’s Web site boasted in its heyday. “Send us your toughest loans, and let us earn your business.”

Those were the days: from 2005 to 2007, Accredited made $29 billion in subprime loans.

After years of fighting for a home loan modification, Carlos Lovera has given up.

The Bakersfield bookkeeper hasn’t had the means to make his $2,600 monthly mortgage payment since his pay was reduced and his wife went on disability. Plus, he owes more than the house is worth because he bought during the real estate boom, then refinanced and opened an equity line to add a swimming pool and landscaping.

When a balloon payment came due last year, Lovera threw up his hands. He hasn’t made a payment since September, and he’s done sending duplicate documentation and getting nowhere.

“I have a 700-page file I’ve been sending to these people since 2006,” Lovera said. “I can’t get past the customer service people in India. Those people have no decision-making authority.”

While some homeowners have successfully negotiated with lenders and loan servicers to modify home loans, most borrowers seeking relief say they’re spinning their wheels.

Since the real estate crash began, far more borrowers have lost homes to foreclosure than have obtained modifications.

The Service Corps of Retired Executives, or SCORE, has retired real estate professionals who occasionally advise troubled borrowers. They say it’s nearl Read more…

Mortgage Loan Modification Answer:by Loan Modification Expert – Dan NorthSun Trust Mortgage is one of the best mortgage companies to work with on loan modifications. They are fast and will deal. You have a better chance at principal forbearance at Sun Trust Mortgage than any other bank.

I am guessing that the mortgage loan modification you arranged was not a HAMP mortgage modification. The 1st mortgage may have been HAMP but the 2nd mortgage interest was not reduced to 1% so is not a 2nd lien modification-2MP under Making Home Affordable. Read more…

Mortgage Loan Modification Answer:by Loan Modification Expert – Dan NorthYour lender can not force you to use your retirement funds to make your mortgage current.

Under the Making Home Affordable Modification Program retirement funds are not included in your liquid assets available for bringing your mortgage current.

Do Not Spend Your Retirement Funds
To Bring Your Mortgage Current

I do not advise spending your retirement funds to bring your mortgage current.

I have seen to many people spend all of their retirment funds trying to save their home, left with a big tax bill from early withdrawl and losing their home anyway.

There can be an exception to this depending on your age and the reasonable expectation that you can replace those funds before retirement or they would be in a better financial position by keeping their home and could reasonably afford the monthly mortgage payments without continually going into retirement funds.

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