I am delinquent in my mortgage and am having trouble making payments. I have signed up with a company called Advanced Professional Network who have put me in a loan modification dropping my mortgage payment about $400.
I was so relieved that someone was helping….but now I’m second guessing and have a bad feeling about this company. The did not ask me for any fees; they said they would be contacting my mortgage company directly. And advice???
Can you tell me if this was a big mistake and if I can cancel this agreement with them if they are not reputable?
I went and looked at the website for Advanced Professional Network at advancedprofessionalnetwork.com. Their website is void of anything meaningful or helpful. They don’t even say what state they are registered to do business in.
But if I chase down the domain name ownership it says the domain name is owned by:
Advanced Professional Network
27068 La Paz Road
Aliso Viejo, California 92656
It looks like that address is actually a UPS Store. – Source
I searched the State of California records and could not find a company that was registered to do business under the name Advanced Professional Network.
I would recommend that anyone considering using such a company should read the following free guides.
- The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
- 10 Must Do Steps to Find the Best Credit Counseling or Debt Settlement Company for You
- How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off
I have no idea what type of agreement they may have secured for you. Is it just a temporary modification? What are the terms?
If you want me to review any agreement you signed, you can upload it to me here.
Review of Advanced Professional Network Agreement
I subsequently received the agreement and below is my plain language review of the agreement. I am not a lawyer and I’m just posting my observations based on what the agreement says.
According to the agreement the consumer lives in Connecticut. I have contacted the Department of Banking in Connecticut they have confirmed the company is NOT licensed to offer debt relief service to Connecticut residents.
The agreement is actually not for a mortgage modification. According to the agreement it is for “an analysis of real estate debt and income, as well as examining the potential for restructuring and lowering the borrower’s general debt and real property secured debt, or any other loss mitigation options that best benefit[s] the Client.”
The debt restructuring, if any, is farmed out to a company called ModStart.
There are no guarantees that a lower interest rate, reduced mortgage payments, or any other reduction is available.
The company does not guarantee their performance. No refunds are available except under the following situation. “The Client may only be entitled to a return of the remaining portion of unallocated service fees if all the terms and conditions of the Agreement have been met and only at the sole discretion of the Company.”
Any disputes must be settled by arbitration in Orange County, California.
ModStart is located at:
522 Hunt Club Blvd
Apopka, FL 32703
And guess what, that’s the address for another UPS Mailbox store. – Source
According to the State of Florida website there is no company registered to do business in Florida under the name ModStart.
The agreement charges $3,268 and charges fees ahead of the consumer getting a full and final modification agreement accepted by the lender. This appears to violate the Federal Trade Commission Mortgage Assistance Relief Services Rules about no advance fees.
Here are some free mortgage modification resources to use.
Be sure to first read How Not to Get Scammed by a Mortgage Loan Modification Company.
First you’ll need to determine your current debt-to-income ratio. The target debt-to-income ratio under the Home Affordable Modification program is 31%. Use this free online DTI calculator.
Mortgage Modification Calculator
The mortgage modification eligibility calculator will ask you several questions and then show you which programs you may be eligible for.
Free Mortgage Modification Help and Counseling
If you have questions about the process or eligibility you can call 888-995-4673 and get connected with an mortgage modification adviser for free. This help is provided by government subsidized HUD Housing Counselors and they can be a big help in navigating the modification process.
In order to assist you, the housing expert will need to gather some information from you. Have the following documents handy:
- Information about your first mortgage, such as your monthly mortgage statement.
- Information about any second mortgage or home equity line of credit on the house.
- Information about the monthly gross (before tax) income of all household members contributing to pay the mortgage, including recent pay stubs if you receive them or documentation of income you receive from other sources.
- Information about your savings and other assets.
- Account balances and minimum monthly payments due on all of your credit cards.
- Account balances and monthly payments on all your other debts such as student loans and car loans.
- Your most recent income tax return.
- It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.), if applicable.
You can also get free help and housing counseling from a local HUD approved counselor. You can find your local free housing counselor, here.
Contact Your Mortgage Company
Not sure if your mortgage company offers modification programs? Not all do. You can contact your mortgage company to ask them about mortgage modification programs you might be eligible for. Click here to find your mortgage company.
Want to know the net present value (NPV) of your home for the mortgage modification process? No problem, use the free NPV calculator to find out. The NPV calculator is right here.
The calculator can be used by homeowners who have been denied a HAMP modification because of their NPV result or can also be used by homeowners prior to applying for a HAMP modification to help them better understand the NPV evaluation.
No Advance Fees
The Federal Trade Commission has a Mortgage Assistance Relief Services Rule which prohibits advance fees for mortgage rescue services or mortgage modification help.
Please post your responses and follow-up messages to me on this in the comments section below.