I know that it is a bit harsh to call getting a loan modification a scam, but Oklahoma City homeowners need to beware of this. Personally I do think it is a legal scam that takes money from distressed homeowners, gives them false hope, then puts them in a worse position than before that leads to foreclosure. Here is now it works:
You are an Oklahoma City homeowner with a hardship that has you behind on payments and you want to do anything to keep the house even to the point of running up your plastic in a desparate attempt at holding out until something comes along to make life better. It doesn't get better so you start thinking about a foreclosure, a deed in liew or maybe even a short sale. Up steps you would be rescuer, your lender and have they got a deal for you!
The deal is, they will lower your payments for a period of time, not ask for your back due missed payments, interest, and penalties, and give you that welcome breather you need to get your feet back on solid ground. Trouble is the ground is not solid. All the payments past due, and all the reduction payment amounts you should be paying all all added to the backend of your principle and when it is reset ot is at a higher rate that agin you cannot pay and you are back to square one of a foreclosure.
Why do they do this. It should be a big red flag that the lender does not care about your backend ratio of debt. In many cases is is 20% higher than the normal maximum rate. That is your first clue as to their motive. They know that you are going to be worse off. All they care about is that you make some payments in the meantime that if you went into foreclosure they would never get. So if that is $8000 it help their bottom line and gives them free money and they do not have to report it as a toxic asset on their books. They win and you lose.
So before you take that step to a "loan modification" that forgives no principle and does not give you permanent relief let us tell you about your short sale options. You may even qualify for a program where not only you do not make payments to live in your house, then they in turn give you money at closing. We are here to help.
Joe Pryor & Charlene Humphreys, Distressed Property experts
joe@joepryor.com
chumphreys2@cox.net