2/2/2011 9:55 AM (PST)

The Loan Modification industry is rife with scams and cons, and consumers must exercise utmost caution when choosing an entity....Your best tool for information and advice is this search engine: www.bbb.org

2/2/2011 12:49 PM (PST)

In general, we recommend that if you are having trouble making your mortgage payments we would recommend that you first seek a loan modification through a HUD approved non-profit housing counselor ASAP.

CALIFORNIA RESIDENTS:
If you are in CA and have been unemployed you may qualify for the state's Unemployment Mortgage Assistance Program that was launched in January 2011. Call 888-954-KEEP (5337) to see if you qualify.

CA has other mortgage and renter assistance programs besides the unemployment mortgage assistance program that are launching in the first 2 weeks of February 2011. Check our Facebook page for updates on these: http://www.facebook.com/Los.Angeles.BBB

If you don't qualify for the CA state programs, they will refer you to another national foreclosure prevention hotline to speak with a HUD certified housing counselor who can evaluate your housing options, open lines of communication with mortgage lenders, negotiate a loan modification, and help you with household budgeting, all at no cost.

National Foreclosure Prevention Hotline: 888-995-4673
Remember, if you are a CA resident call this number first: 888-954-KEEP (5337)

2/2/2011 4:59 PM (PST)

So what do they do? Charge you to prepare docs for the Bank?

2/2/2011 5:14 PM (PST)

You first need to know if you qualify for a loan mod. Here are the basics: 1. Legitimate hardship: Loss of income, medical issues, divorce, death in the immediate family. 2. No equity in the home 3. You must have income. (not unemployment benefits) 4. Check your payment on your house for the correct percentages. Current house payment, divided by your gross monthly income. Example: A 1500.00 (including property tax and insurance) house payment, divided by 3300.00 a month income equals 0.45%. It needs to be 31% or less..so in this case, the example "qualifies" for a loan mod, since the house payment exceeds 31% of the gross income. *There are many other factors that the bank considers....but this is a good place to start.