According to the Federal Trade Commission in a recent Consumer Alert (“Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud”), foreclosure “rescue” businesses may use half-truths and outright lies to sell services promising mortgage relief.
The businesses allegedly exploit homeowners by pitching forensic mortgage loan audits requiring large upfront fees in exchange for a review of your mortgage to see if your lender complied with mortgage lending laws.
As part of the pitch, homeowners are apparently told the audits can be used to prevent foreclosure, modify mortgages or cancel loans.
The FTC says it has found no evidence that forensic loan audits will help you get loan modification or any other foreclosure relief.
Read more from the NW Times
The FTC is correct, the only path to a Loan which can be affordable, today, tomorrow and for life, is to find a Private Money Lender, to get the old Mortgage Note purchased and a new Mortgage Note created. The new Mortgage Note will be based on the current market value and not a principal which reflects the highten values at the end of the bubble. This all we do, we can be hired, to purchase your Mortgage Note and then we create a Brand New Mortgage, you end up with an estimated 80% Loan Principal to the current market value, yes with fixed interest 30 year term and 3 year pre payment penalty. We do not want to do all we have to do, to purchase the Note, then create a New Note, give you 20% Equity and have you walk away only to get a refinance, at our expense.
Summary, your existing Mortgage Note is Underwater or Up Side Down, get rid of it, any way you can. We write New Notes and get rid of the old ones. We do not feel Loan Modifications, Forensic Audits or Loan Restructuring does anything but prolong your default on a Loan you can not afford to keep. You can’t refinance it now, in five years or possibly 10 years. You are better to walk away, rent, save money, repair your credit and purchase again in three years or get us to Purchase the Mortgage Note and Create a New Mortgage Note.
That is what no Banker, no Loan Modification, no Forensic Auditor and No HUD Housing Counselor will tell you.