Several loan modification companies made an appearance in a recent Atlanta Journal Constitution article, ‘Companies Promise Foreclosure Help, Don’t Deliver‘ about the dangers of loan modification or foreclosure rescue companies. Companies are facing both civil and criminal charges in different states for their actions which are generally considered to rip-off consumers by promising services these companies either can’t or don’t deliver.
FHA All Day, Peoples First Financial have raised the attention of regulators and complaints from consumers. Part of the issue here is that no loan modification company has any control over what the underlying lender ultimately decides to do. No lender is required to modify any loan.
Recent investigations into loan modifications by lenders has reveled that only about 15 percent of eligible loans have been modified and that some lenders are worse than others. For example, Bank of America and their Countrywide home loans only modified 4 percent of the loans they service.