The Loan Modification and Santa Claus

I was talking to my favorite person yesterday and they were telling me of all the interesting and unique opportunities clients bring to them in this market. My favorite person was a lier AKA a Lawyer. You know these guys can legally take a retainer fee for breathing. What's worse is that people are willing to pay the retainer fee because of the three little initials behind an attorneys name ESQ. So here it is, an attorney can legally and ethically say that they will get you a 'Loan Modification' because with the right paper work an attorney can increase a homeowners payments. The myth is that not all Loan Modifications are created equal. Lenders will often offer a Loan Modification that is very much in favor of that particular lender. Not necessarily in favor of the homeowner who is actually in a distressed financial situation. Remember in order to get paid on a Loan Modification
you must take money up front, there is no close of escrow or a promise to pay you later. With that said, people will say and do anything they can to get there up front fee. You want a 1% thirty year fix, no problem. How about I reduce your principal balance while I'm at it. Hey I have a better idea, give me five thousand dollars up front and I will do the following:
1% thirty year fix
cut 50% of your principal balance
do a full 'Forensic Loan Analysis' to get you a free home

I will do all this for the low low price of just five thousand dollars.

the same people that got us into the problem have yet again found a way to thrive off the people they put into this situation. My personal belief is they should all be tarred and feathered publicly!

Loan Modification although becoming more popular was basically invented by the same retail genius who invented the word 'Santa Claus' it's just not real. The most common loan modification is a five year band aid, no cut of principal balance and a big problem in five years from now!!

-Christopher Rockey