Posted by SheilaSJCA on 4/10/10 5:33pm
Msg #331179

Something new afoot...not exactly a loan-mod but...

I was called recently for a type of transaction that I had not ever heard of before. They did not call it a loan mod, but there was an 1 page application involved, pick up of certain items from the signer, and a check to be collected. I asked them what type of check, (how much,and what is it for)? They never did answer my question. The SS told me they were brand new, which prompted me to ask them why now ,would they start a SS in this economy? Answer was because they have this new client. The fee was $55 and they also wanted me to sign an agreement that protects them and not me. (you all know what those agreements are like!) I did not fill out the form.
This "SS" is actually an arm of the company providing this service, although they did not tell me so, but google certainly showed them to be pretty chummy. (located in same building, different suite number/phone numbers pretty similar too). This brand new SS also has a webiste, which I checked out. It is a really cheesy free website, which is very poorly written. It puts down all other notary services as being unreliable and unprofessional, but if you use THEIR services, you will be spared from such a fate! It would be rather funny, if it wasn't so pathetic. Never hear back from them.
Wondering if any one has done one of these? Especially with all the recent posts about loan mod application appts.
The actual Lender/service provider has a website too, and this is the gist of what their website describes as their service:
The applicant's underwater morgage would be sold to an "investor" for pennies on the dollar with the full cooperation of the underwater lender. Then the new "investor" makes a new loan to the homeowner, that is for less than originally owed, at better terms. Some how the underwater lender is supposed to be happy to get rid of a potential or non-performing loan, which the investor buys for cheap, and sells for a profit, so everyone one is happy.

Reply by Sylvia_FL on 4/10/10 5:47pm
Msg #331180

"The SS told me they were brand new, which prompted me to ask them why now ,would they start a SS in this economy? Answer was because they have this new client"

Hmm that would also set off alarm bells. they start a company because they have a new client? To have a new client one would assume they had been in business a while and had some old clients

Reply by SheilaSJCA on 4/11/10 1:30pm
Msg #331227

You are right Sylvia, it makes one wonder... I asked her if the business had been around under another name maybe. I tried to get the name of the owner too, but she evaded all my questions. She did not like that I asked so many questions.

Reply by 101livescan on 4/11/10 2:35pm
Msg #331240

Hostorically, when times are tough, tougher than I've ever seen in my life time, there are more scams out there than when things are on track, if they ever have been. seems like these are the times when the SCAM artists really have their thinking caps on. I love the "FIX YOUR CREDIT" and reduce your credit card debt by thousands. These companies promise to negotiate your debt away. What they really do is charge an upfront and very painful fee to freeze all your cards, work out a payment plan with the CC companies. They actually pay themselves first, pay little to the CC company. This plan still dings your credit score and freezes your ability to use your CCs or to apply for any new ones. Actually, under the new credit guidelines you can work out a payment plan with your CC company directly and not be subject to the HUGE upfront fee.

Watch out for the wiley ones out there trying to take advantage of people with credit problems, both mortgage debt and credit card debt.

Reply by MikeC/NY on 4/10/10 5:51pm
Msg #331182

"The applicant's underwater morgage would be sold to an "investor" for pennies on the dollar with the full cooperation of the underwater lender. Then the new "investor" makes a new loan to the homeowner, that is for less than originally owed, at better terms. Some how the underwater lender is supposed to be happy to get rid of a potential or non-performing loan, which the investor buys for cheap, and sells for a profit, so everyone one is happy. "

Sounds like a scam to me... The lender would make more money by allowing a short sale; why would they agree to something like this??

Assuming the lender will work with the homeowner, the usual progression to try to work things out is:

1. Loan modification
2. Short sale
3. Deed in lieu of foreclosure
4. Foreclosure

Even at a foreclosure auction, the lender usually stands to make more than "pennies on the dollar", plus in many states (CA is not one of them, I think) they can get a deficiency judgment for the balance. I don't understand how this would benefit anyone other than these mysterious "investors"...

Reply by LKT/CA on 4/10/10 7:39pm
Msg #331190

Can you share the sites of these companies - pleez?

Reply by SheilaSJCA on 4/11/10 1:24pm
Msg #331226

http://accusign.vpweb.com/default.html and
http://www.primexfinancial.us/
I could find nothing about a government sponsored program called H.O.M.R. either. Even though the website says they collect no up front fees, that is not what the SS said, and again she would not tell me anything about how much or why I would need to collect a check. Yup, red flags alright, I backed away with my ten foot pole.

Reply by Sylvia_FL on 4/11/10 2:27pm
Msg #331238

H.O.M.R - Home Owners Mortgage Retention?

I found this:-

http://www.prlog.org/10539950-struggling-homeowners-find-relief-with-ifis-homr-program.htm

Reply by SheilaSJCA on 4/11/10 2:42pm
Msg #331241

I saw that free press release too. Investors Finance seems to be the same type of company, offering the same thing. But there is no "official" govt. sponsored program called H.O.M.R. They just want the public to have that impression, the ancronym sounds very similar to the programs that are in place with govt. assistance, that also have catchy litttle names, ie; H.A.M.P. (homeowners affordable modification program)

Reply by Sylvia_FL on 4/11/10 3:00pm
Msg #331243

i couldn't find anything as a government sponsored program either.

On their website I did find some more info.

http://www.keepusinourhome.com/HOMR.html

and their FAQ page:

http://www.keepusinourhome.com/FAQ.html

Still sounds a little dodgy to me.

Reply by JanetK_CA on 4/12/10 12:46am
Msg #331301

What jumped out at me is this statement:

"An entirely new loan is created for you with a new note - the only difference is that instead of paying your bank, you are paying an investor."

They call it a "restructuring" of the loan, but I don't see how this is different from a refinance. How can they simply "restructure" an "entirely new loan", change the Note and not have to go through the same process with the same disclosures that would apply to a refinance? Doesn't add up to me, either.

And what about this: "Rental s are OKAY if the note is 'Owner Occupied'." Am I missing something here? Are they saying that if the borrower lied on their loan package and is really renting the property they don't care? 'Course, I suppose they could have lived in the property for the required period of time, then rented it out. Still...

Reply by MikeC/NY on 4/11/10 4:52pm
Msg #331251

There's also no guarantee that the bank will go for their all-cash offer - and meanwhile, they're collecting some sort of fee upfront.

Realistically, if you have a $150K mortgage on a house that is only worth $75K, the ONLY way this scheme would work is for them to convince the bank to take significantly less than $75K for the note. The bank could probably do better than that with a short sale or a foreclosure. It's tough to get a short sale done, even with all cash offers - why would they just sell the note??

Also, the SS is using a free website provider - that has "fly-by-night" stamped all over it...

Reply by Susan Fischer on 4/11/10 12:15am
Msg #331201

CLANG CLANG CLANG - RED LIGHTS FLASHING

Here are ten-foot poles. Plenty for everyone - please pick one up on your way out, use them liberally -

Thanks to our speaker tonight, Sheila from San Jose (applause, wootwoot) - for her excellent update on the latest ScumAlert - keep 'em comin' Sheila! (wootwoot)

Ok, everyone, g'night, keep sharp, and SHARE!

And, let's be careful out there...

Reply by S Peterson on 4/11/10 6:42pm
Msg #331271

"accusign" This alone should have sent off the alarms! n/m