Is it me or are “loan modification scam” companies becoming as prevalent as mortgage broker chop shops were a couple years ago? I don’t mean to be overly critical, and I understand many do good work, but I have heard stories of “former mortgage industry professionals” charging thousands of dollars to negotiate with the bank on behalf of the borrower.
At the risk of sounding like a protectionist, isn’t this something that should be done by a lawyer?
I have so many people come into my office who were victims of “predatory lending” and then victims of this next loan modification craze.
Take for instance just last month, I had a client tell me they paid $15k to a “modification company”. The company promised her they would reduce her balance and lower her interest rate to 5%. This truly sickens me.