[macysmom]

Just wondering if anyone has used this company for a loan mod. They swear they can turn my interest only loan into a 4.3% fixed. Before I go down and check the place out I was wondering if anyone knew anything about them.

Has anyone had any luck with getting loan mods & can refer me to a place that really works? Thanks in advance!

[KD Hawaii]

If you want a loan modification, it can ruin your credit. Is that what you wanted?

[macysmom]

I've never been late on my payments yet. They aren't asking me to stop paying. They are telling me they can lower my interest rate & give me a fixed rate for the rest of my loan.

[plaster3]

With loan modification companies, you need to be careful and make sure you try your original mortgage company first, and even regional or large chain banks too.

Third party loan modification companies may provide you with lower interest, but it could be for longer terms, and could implicate other "flat" fees that are required.

I'm in banking - so my best recommendation would be for you to discuss a modification with your mortgage company first - many will not want to lose out on a home because you will stop paying - they may be willing to work with you.

Let me know if there are any other questions you may have! =)

[macysmom]

Thanks. I was already denied by my loan company. Thats why I was looking to get help from other places. Do you know are they helping people who are able to pay but are in bad loans--mine for instance is a 6% interest only loan that is set to adjust in Jan of 2011. I am going to need help before it adjusts! I am about $150k upside down as well.

[plaster3]

Wow - that is really surprising. Banks don't want to be real estate agents, it's a shame they won't help you.

I would recommended that you make sure the legitimacy of the loan mod company at the very least. Ask if there are hidden fees and how exactly this will impact your loan long term. Check and see how they are able to grant you such a low rate like 4.3%, when many banks aren't going much lower than 5% for people with excellent credit.

Hopefully other posters on here will help. =)

[ndb3]

You should ask your question in the mortgage section of this forum, you will probably get more responses and better info on loan modifications.

http://www.city-data.com/forum/mortgages/

[macysmom]

Thankyou all for your help!

[KidsinVegas]

When Banks modifiy loans they have to expense them on the books. This expense lowers profits when reporting to shareholders. So why do they want to do that? They don't.

There is not incentive for Banks to modify loans unless they can make more money. And that is counter to the intentions of the consumer.

If you are 150K upside down they don't care.

The Federal Government hands them free money on the backend. They have no reason to unload properties, to help consumers, etc.

There are no mandates in the programs. The Government says... here is a pile of free money please help people. It simply doesn't work.

[jjameson922]

I have to disagree with everything that has been written. My bank just gave me a loan modification about 8 months ago. They took my loan down from 6% to 4.125 and reset it to 40 years. I was not charged any fees for this but did have to establish an escrow account where I escrowed my taxes and insurance. I have excellent credit and have never been late on a payment but was able to show them, through changes in employment, that our ratios were now so out of whack, there could have been a chance of inability to pay.