Latin for "Let the buyer beware".
By now I’m confident you’ve been overwhelmed with email's, and phone calls in response to your request for
help with a possible foreclosure situation. ..
I’m also confident you’ve heard many different claims, promise’s, and PRICE’S (all over $1000 & up) from as
many different people / companies, and that right about now, you’re very confused trying to determine what’s
true, and what’s not!
Although there are many GOOD, legitimate Loan Modification companies providing valuable, honest help and
advice, there are also an equal (if not more) amount in the industry exploiting America’s foreclosure crisis with
one main goal..making fast, “easy” money by preying on the financial distress, and desperations of their
neighbors. Be VERY WARY of "amateurs / sales people" PLEASE BE VERY CAREFUL!
I have been in the mortgage lending / banking industry for over 20 years.
Everyone on my staff is a licensed, bonded, insured financial professional.
NO “sales” / unqualified / inexperienced people work at GCS, Inc.
As an experienced banking professional, I feel it my responsibility / duty to provide American homeowner’s
with the TRUTH , FACRS, and REALITIES of the loan modification industry by exposing fact / separating Truth
from the Sales tactics designed to mislead, misinform, and separate honest, hard working American
homeowners from of their very hard earned, very much needed money.
Below is a list of “Facts v Fiction” offered to educate and inform consumers.
Disclaimer:
This information is not offered and / or designed to discredit any company, profession, individual or to endorse my firm’s services.
This information is offered to inform / educate, and help prevent American homeowner’s from being taken advantage of by those
who would prey on their misfortunes for their benefit / profit.
AMERICA, ENOUGH IS ENOUGH! - TRUTH is TRUTH, FACTS are FACTS!
- PER NEW LAWS, RESIDENTS OF MARYLAND, NORTH CAROLINA, MINNESOTA, ILLINOIS, FLORIDA, AND NEW
YORK ARE NOT REQUIRED TO PAY UPFRONT FEES FOR LOAN MODIFICATION SERVICES.
- THE STATE OF COLORADO NOW REQUIRES ANYONE ENGAGING IN LOAN MODIFICATION TO HOLD A STATE
ISSUED MORTGAGE BROKER / LENDER LICENSE. THIS APPLIES EQUALLY TO ANYONE / EVERYONE SOLICITING
COLORADO BUSINESS FROM IN OR OUT OF THE STATE. ANYONE CONTACTING A COLORADO RESIDENT IS
REQUIRED TO HOLD AN INDIVIDUAL LICENSE. ALWAYS ASK FOR THIS LICENSE NUMBER!!
- First & foremost, there are NO “magic wands” or instant, universal
“fix all” loan modification programs available. Do not be misled! NO private company is
affiliated with nor has the authority to "pre qualify / pre approve" you for ANY of the new
Government programs being offered!! Government programs are FREE - Anyone attempting to use the
Governments name / charge you for Federal programs is in violation of Federal Law - Period
- Banks are NOT passing out low “emergency” interest rates and / or deferring back payments and / or reducing
principle balances “just because.” Every lender / Bank has their own unique modification policies, procedures,
and programs in place, and not everything applies equally to all homeowners!
- Many loan modification firms claim to be “attorney backed.” Of course attorneys are qualified, licensed legal
professionals that may (or may not) be helpful however, attorneys are NOT bankers by default and not
“automatically” qualified to engage in mortgage finance / modification or "automatically" empower them with
any "special" abilities. Any lender can verify this statement.
- Loan Modification DOES NOT “require” an attorney. (Any lender can / will easily verify this statement with one
phone call) However, should professional legal counsel be needed, GCS, Inc. has access to qualified counsel
or can assist you in locating a qualified, reputable attorney in your local area. Out of State attorney's that are
not licensed to practice in your State may be useless!
- If you are in an ACTIVE Bankruptcy (Chapter 7 / 13, etc) your lender CAN NOT MODIFY your loan and NO
modification company can "force" them to and / or work around it without express consent given by the
Federal Bankruptcy Court / Judge - DO NOT LISTEN TO ANYONE WHO TELLS YOU THAT BEING IN BANKRUPTCY
IS "NOT A PROBLEM" ....IT IS A PROBLEM!!!
- You have the right to, and absolutely should demand that anyone contacting you from an “attorney backed”
company provide you the attorney’s name, contact information, and license number. This information should
be given to you freely, and without hesitation / reservation. Once you have been provided the attorney’s
information, take a moment to verify the attorney’s credentials
- If you absolutely “need” and attorney, retain one that is LOCAL, and licensed to practice law in / by your State!
Your State’s Bar Association can assist you in locating qualified, licensed local counsel.
- ALL lenders require no less than 24 hours and up to one full week to post a THIRD PARTY AUTHORIZATION
FORM. No company or individual can simply call / speak to your lender without having that authorization on file!
Your lender will not accept, recognize and / or acknowledge an “electronically” signed third party authorization
form. You can easily verify this / expose this sales “trick” by contacting your lender & asking them what their
specific policy is regarding accepting / posting third party authorization information.
- Loan Modification representatives DO NOT have “special” access to your lenders “underwriters” nor do they
have REAL, licensed, insured underwriters in their office “approving or denying” modification applications.
Underwriters (real ones) work at / for the lenders and have very little, if anything to do with the loan
modification process prior to your case being submitted for review. REAL underwriters are required to be
licensed, and carry “Errors & Omission” insurance. Again, you can easily expose this sales tactic by
requesting the alleged underwriters name & license number. DO NOT settle for any answer that does not
provide the requested information.
- The majority of Lenders / Banks are federally chartered institutions and are under NO legal / moral obligation to
negotiate / modify your loan. Banks / Investors negotiate to remain profitable, and do so merely as a courtesy,
and as a means to minimize financial loss. NO loan modification company / individual can “force” your lender
to work with them and / or instruct the lender to “automatically” stop foreclosure, defer back payments or
“suspend” your payments while in negotiation! DO NOT LISTEN TO, OR FOLLOW THIS INCREDIBLY BAD and
DUMB ADVICE! IT IS SIMPLY NOT TRUE!
- NO LOAN MODIFICATION COMPANY OR INDIVIDUAL HAS ANY TYPE OF “SPECIAL” RELATIONSHIP WITH ANY
LENDER AND / OR CAN HAVE “FAVORS” GRANTED. BANKS / LENDERS HAVE GUIDELINES, AND ARE GOVERNED
BY FEDERAL LAWS. THERE IS NO WAY ANY BANK / LENDER IS PLAYING “FAVORITES” WITH ANY LOAN
MODIFICATION COMPANY OR PERSON. THE LEGAL CONSEQUENCES OF SUCH ACTIVITY ARE / CAN BE VERY
SEVERE.
- Any homeowner has the ability to modify their own loan by, and for themselves however, the loan modification
process is complex, and can often present “challenges” that require the knowledge / skills of an experienced
financial professional. Retaining the services of a qualified professional can prove to be very beneficial BUT
this is not a profession for amateurs! Be certain to choose representation that is genuinely experienced,
knowledgeable, and has the credentials to prove it! NEVER hesitate to challenge anyone’s credentials and / or
experience. A true professional will gladly welcome your questions, and provide you with any / all information
requested.
- Promising / quoting lower interest rates, payment / loan amounts, and terms, etc. is considered indirectly
acting in a mortgage broker / lender capacity and requires (almost every State in the Country) a State issued,
State specific license be held by the individual speaking to you. If someone calls you quoting interest rates,
payment amounts, loan terms, etc, immediately ask them if they (not their company / employer) are individually
LICENSED as a mortgage lending professional by / in your State to do so! If they are not, they could be violating
your State’s licensing / regulatory laws, and should be reported to your States governing authorities
immediately! Again, a legitimate professional will be happy to offer up this information without hesitation and /
or reservation.
- Not all lenders have the same programs, and policies regarding modification programs. Nothing applies
“universally.” Loan modifications are done on a case-by-case basis, and each situation is unique unto itself.
Again, there are no “universal” programs in place unless sponsored by a Federal / State governing authority &
to date, there are no “automatic / universal” Government programs in place. Also, NO modification firm /
individual is Federally funded and / or working (unless HUD approved non profit) directly with the U.S. or State
Government(s). You should thoroughly investigate any person / company claiming such affiliations, and
immediately report them to your State’s governing authorities, and the Federal Trade Commission!
- Banks / Lenders will NOT / do NOT "automatically waive” back payments and / or defer arrearages to the end
of the loan…this is done on a case-by-case basis & has to make sound financial sense for the bank, and the
homeowner. Accordingly, there are some costs that may or may not be deferred such as attorney / legal fees,
delinquent tax / homeowner’s insurance etc. Your lender WILL ask for some type of payment from you prior to
the modification agreement being completed. Be prepared for this expense!
- Your payments are not “automatically” suspended nor is foreclosure "automatically" stopped by virtue of
hiring a loan modification professional. YOUR LENDER (or their attorney) ARE THE ONLY ONE’S AUTHORIZED TO
MAKE THAT DECISION! Banks only suspend payments AFTER reviewing / approving modification. DO NOT LET
ANYONE CONVINCE YOU TO STOP MAKING PAYMENTS and / or have you send your mortgage payment money
to them to hold in an “escrow” account! Modification firms have absolutely no reason to take / hold your
payment money period!
- DO NOT let anyone prey on your stress / desperation with high-pressure sales and / or scare tactics. If it
sounds to good to be true, it probably is Period!
- Loan Modification DOES NOT require an appraisal. DO NOT let anyone (other than your lender) talk you into
paying for one!
- Be very wary of “junk fees” such a “processing”, ongoing monthly charges, etc….
- Finally, Many of the people contacting you are nothing more than commissioned sales people! Ask questions!
Get THEIR personal / professional credentials, not just the company they work for! Make them prove
themselves, and support / verify the claims they are making! DO YOUR HOMEWORK! This is your home, your
money, and your future. DO NOT entrust such an important, life-altering decision to someone just because they
say what you want to hear and / or sound “good” on the phone!
- If you believe you have been the victim of fraud and / or predatory lending, seeking the counsel of a qualified
LOCAL attorney is a good idea. You can (and should) also report this activity to your State’s Attorney General’s
office.
- DO NOT base your decision based solely on a BBB report / rating!! The BBB is NOT a Governing or regulatory
agency!!
AGAIN, Honest, Legitimate, Professional Help does not have to cost you thousands of dollars! Better yet, DO IT
YOURSELF and SAVE MONEY!
“I can do all things through him who strengthens me.”
Philippians 4:13
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