yeah, some bozo should get 2% so it’s 31% of his income. why don’t we all just tell our wives to stay home instead of work, take a temporary paycut ourselves so we can save thousands if not hunreds of thousands over the life of our mortgage. incentives to work less, earn less, what wonderful ideas to build a strong county. privatize gains and socialize losses much longer and we a a former great nation are no more.

get a brain people or we will cannibalize one another… truly sad.

If the banks think they can generate more money from you as a borrower, what is their incentive to take less money. The truth is the $5,000 that the banks will be paid (over 5-years if the modification is successful) as part of the “Pay for Success” under the Making Home Affordable program is miniscule compared to the 2 or 3 points they are trying to hold on to by not leading with their best foot forward and providing borrowers with the best modification under the program. The 2-3 points result in ten of thousands of dollars banks will generate (or not generate) over the life of the loan.

1st-Trust.Net, The Loan Modification Corporation does not see this process as subjective or ambiguous. The FDIC has published a guideline which states your mortgage payment should be no more that 31% of your gross income. This figure includes your mortgage payment, taxes, insurance and HOA or condo fees.

Instead of doing what is right, banks are staffing their call centers with people who are not qualified to provide mortgage advise and know very little about the waterfall process. We have seen offers from banks to reduce the borrowers interest rates to 5% when the borrower completely qualifies for a 2% interest rate modification.

Banks should not be as concerned about this reduction. Uncle Sam, the U.S. Tax payer has secured the banks to the tune of 50% should the modification fail. In other words, if the modification fails the government will pay the bank 50% of the loan value and the bank can still sell the property for the remaining 50% or higher. Yes, they can still make a profit by engaging in loan modifications if the workout does not succeed.

This is part of the natural correction that must happen in the real estate market in order for us to get back to reality. If the modification does not work, banks get half of their money and can sell the property for a realistic value to an investor willing to bear the risk at a lower market price. This is the closest we are going to get to a soft landing. I have viewed many foreclosed properties, which are rotting or referred to as toxic assets because the banks are still trying to get close to full value.

Wake up, look at the number of job losses we are experiencing!! When was the last time you heard that the national average wage is increasing? How many employers are extending salary increases? How much home a borrower can afford is based on how much income they make.

Banks have focused on striking fear, uncertainty and doubt into the hearts of borrowers by attempting to steer them away from loan modification firms. We now early on of the fraud that took place, and with the FBI cracking down this situation has changed drastically.

I do not believe borrowers will receive the best possible advise from a free or low cast service and most of the time hiring an expensive law firm is applicable in a case where predatory lending occurred.

Should borrowers decide to hire a loan modification firm, know who you are doing business with, why the are the best to represent your modification and how they aim to deliver on their promise.

No one, not the banks, attorney’s or loan modification firm can promise or guarantee you a modification. They can only promise you how well of a job they will perform presenting your request, ultimately banks and their investors have the final say as to whether they will support the request.

I am certain the next time the banking industry is at risk, the U.S. Tax Payers voice will be heard. Remember, history repeats itself and what comes around goes around.

1st-Trust.Net offers a no modification no cost offer and can work with borrowers in a dire situation on a payment plan should they not have the resources to hire the necessary representation. The Loan Modification Corporation does not charge advance fees for loan modification and continues to re-enforce its commitment to homeowners and the industry as a whole.

We welcome the opportunity to help represent you or steer you in the best direction.

Thank you for your consideration.

Mr. Sharaf