Get Out of Debt Guy - Steve Rhode

I Received a Mailer From Payment Reduction Service and Core Pac Solutions to Modify My Mortgage. – Charles



“Dear Steve,

My mortgage is upside down, I am one month behind, I cannot qualify for a re-finance given my credit score. I contacted my lender to see if I qualified for the federal loan modification plan (countrywide/BOA) and they indicated that they will contact me if they think I qualify-no word.

I got an unsolicited mailer advtertising a Payment Reduction Service (Core Pac Solutions) formerly Stephen E. Heyn & Associates, out of California. I called and they indicate that they are a Law Firm assisting peolple like me in securing mortgage modifications.

I would have to make a one-time payment of $500 (retainer) upfront; if I commit by paying and submitting all necessary documentation regarding my current loan, they will work on my behalf with my lenders toward modifying my payments. They also indicated that I would have to submit to them one months’ mortgage payment to hold in escrow until my lenders work out a solution.

Can I trust this type of company to honestly work on my behalf-should I be paying for this type of service?


Dear Charles,

I don’t know Core Pac Solutions or Payment Reduction Service or Stephen E. Heyn from a hole in the ground. I’ve never heard of them before. I did go and visit the Core Pac Solutions website, which seemed very generic. If you do go and visit it, turn your speakers off first.

What I can share with you is that my gut reaction would be not to do it. Here’s why.

Not every mortgage company is participating in loan modification programs. If yours isn’t then you could just be throwing good money down the drain. You first step should be for you to make a free call to your mortgage company and ask them to direct you to the loan modification department, which you’ve already done. If the lender is offering loan modifications you are eligible for then they will provide you with the paperwork and information necessary.

A mortgage loan modification is not a given. There are some very tight criteria about who will and won’t be eligible for a loan modification. To date the loan modification process has been disappointing for the majority of people, with either reductions of less than 10% or they discover their bank is not participating.

However, the minority that do meet the criteria and have an eager mortgage company to work with are finding some good modifications available.

I’m really struggling to understand why the Core Pac Solutions, the company that contacted you would need to hold a mortgage payment in escrow. Curious. I can’t imagine a reason why. If someone from Payment Reduction Service or Core Pac reads this, can you please comment and help me to understand why.

If they sent you any promotional material or an agreement to sign, I’d love to see a copy of that to review. If you can scan it, you can upload it to me here.

Now I’m a big fan of hiring a professional to help you with a solution, advice, or assistance when needed, but in this case I don’t see a benefit in paying for a service when your lender has already given you the answer.