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Michael Brown's Blog

By Michael Brown | Agent in San Francisco County,...

Don't pay up front fees for a Loan Modifications

I have been a Realtor, loan officer, and now a loss mitigation counselor here in the San Francisco Bay Area.  I have lived here for most of my life, but that is not important. What is important is in recent months I have been getting several inquiries about Loan Modifications. I am sorry to say this but ALL of the calls have been from people who got burned by paying upfront fees. Please do not do this, it is against the law. In October of 2009 Senate Bill 94 ( SB-94) was passed making it illegal for mortgage companies to charge an upfront fee in California. They can charge you afterwards, if the loan modification is successful. The simplest advice I can give you is to go hire a third party loss mitigation company who specializes in Loan Modifications.  By all means you can go to the bank and try it yourself for free, but it can take you 1 to 2 years. However the banks will not give you as good a deal as a professional negotiator will get for you.

If you pay a loan modification company upfront, chances are they did not do a darn thing for you; they may even generate a fake letter from the bank showing your modification was rejected. I have seen numerous times clients will think their loan modification company is helping them, 8 months will go by and then a letter from the bank arrives telling these people to vacate the property cause it's being foreclosed. If anybody needs legitimate help with a loan modification call me.  Again , please do not deal with anybody / company who is charging upfront fees.  These types of scams are on the rise.

Prime Loan Advisors in San Francisco is a great company for loan Modifications.  They will do all the negotiations and follow up for you.  The products they offer are the MHAP (Making Homes Affordable Plan) which is a permanent fix, and the HAMP (Home Affordable Modification Program.) which is a step up plan.  Both plans include Principle, Interest, Taxes, and Insurance.  Prime Loan Advisors again does not charge any fees upfront.  They only collect a fee at the end if the modification is successful.  If this interest you please call me at 415-230-4302 (direct line).  I'll help you as best I can. Below are some really good websites that can help you out as well.  Thanks again for your time.

Some good websites to help you.

 http://www.hud.gov/utilities/intercept.cfm?http://www.housingeducation.org (HUD websites)

http://www.makinghomeaffordable.gov/   (Obama Plan)


Michael A. Brown

655 4th Street 2nd Floor
San Francisco CA 94127
415-230-4302 (direct line)

DRE License Number 01755432


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