Quick Answer: A modified mortgage payoff strategy should prioritize paying extra toward the 5.125% interest portion first, then the 0% portion. With $255,640 total debt split between $175,149 at 5.125% interest and $80,491 interest-free, paying $6,000 annually toward the interest-bearing loan saves money compared to paying the interest-free portion first.Question:Dear Steve,I bought my house in …
Quick Answer: Before signing with any debt relief company, verify their physical address, state licensing, and owner backgrounds. Demand written performance data, compare contract terms to verbal promises, and check for complaints with the CFPB, BBB, and your state attorney general. If a company won’t answer these questions, walk away.📅Last Updated: February 2026 — licensing …
Quick Answer: The CFPB sued Certified Forensic Loan Auditors (CFLA) for deceptive practices and unlawful advance fees in mortgage assistance services. Michael Carrigan, a named defendant, agreed to a stipulated final judgment requiring full cooperation with the Bureau’s investigation within 14 days of requests.The Consumer Financial Protection Bureau (CFPB) previously went after Certified Forensic Loan …
Quick Answer: Wells Fargo loan modifications are legitimate but have strict qualification requirements, as demonstrated by this borrower’s denial despite a $2,000 payment increase from a balloon loan adjustment. The bank rejected the application because total income hadn’t significantly decreased, even though it included a one-time bonus rather than recurring monthly income.Question:Dear Steve,Our mortgage adjusted …
Quick Answer: Charles Wayne Farris, a sales manager for fraudulent mortgage modification companies, pleaded guilty to conspiracy charges for supervising telemarketers who scammed struggling homeowners. Between 2008-2009, the scheme charged victims $3,500-$5,500 for worthless mortgage modification services through the Rodis Law Group and America’s Law Group.The Department of Justice announced that an Orange County, California, …
Quick Answer: A 64-year-old teacher with $22,000 credit card debt and $129,000 in mortgages on a $66,000 home should consult a bankruptcy attorney about Chapter 7. This could eliminate the underwater property and debt burden, allowing immediate savings during the final two years before retirement.“Dear Steve,I am 64 years old, a teacher. Every year, my …
Quick Answer: Loan modification scams typically involve commissioned salespeople who claim everyone qualifies and may charge fees for unnecessary reports, often pretending to be law firms. Before paying any fees, homeowners should contact free HUD Housing Counselors and their mortgage company directly to determine actual modification eligibility.It’s easy to make you a victim and rip …
Quick Answer: Mortgage modification helps when banks voluntarily participate in programs, but hurts when homeowners pay upfront fees to illegitimate companies since no bank is required to modify loans. Free HUD Housing Counselors provide legitimate assistance without sales quotas, while the FTC warns against any company charging advance fees before securing modifications.“Dear Steve,Can you recommend …
Quick Answer: Chase mortgage refinancing options for Mark’s non-Fannie/Freddie loan at 5.75% rate should be explored through HUD Housing Counselors rather than government programs like Obama plans. The mortgage originated with Washington Mutual and is now held by Chase, making traditional federal refinance programs inapplicable.“Dear Steve,Mortgage is not supported by Fannie or Freddie. Was “self” …
Quick Answer: Free mortgage modification involves working directly with lenders using no-cost online tools and proper documentation, avoiding companies that charge upfront fees. The FTC’s MARS rule prohibits mortgage relief companies from collecting fees until they secure a written offer from the lender that the homeowner accepts.I’ve seen and covered so many mortgage modification scams …
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