I agree with you that loan modification groups serve a purpose, I just sometimes wonder if there isn't a better way. I too have been to most of the shops you speak of as well as many others and these claims that they "care" are way over exaggerated. This is business and another way to make money. Most of the offices are full of the brokers,sales staff and managers, and underwriters that gladly put their clients in the mess to start with. Most of the attorneys couldn't practice regular law (or make any money doing it) so here they are. They rarely touch any cases (as you have noted), yet they make about $300 to $500 or more per file. That means the other $3000 or so goes to the staff, overhead etc.... (Your one guy who claims they've done over 4000 is a now a millionaire btw).
I ran into a few attorney groups early on who didn't collect until the mod was finished. They were doing it the right way (they had other business and were in it for the right reasons). These are the groups you need to find and be promoting. I also believe that at this point, the price should be standardized to at most $2000. This ability to pick and choose your price (depending on how much the client will say yes too--it's like that in these groups whether you like to admit it or not), that's what's partially got the mortgage biz the bad rap it has. This "business" has become a joke (in Orange County Ca especially).
Can you point me at the types of firms you like? I'd love to meet with and promote any path that helps homeowners. Seriously. All I've seen at the firms I've been to are people working to get loans modified. I've seen substantial investments in systems that pre-qualify clients, track progress and report on results. I've reviewed 700 records and checked with hundreds of clients that are happy with the outcome. What else can I do.
When people say that a company is a scam, I take that to mean that the company in question is taking their money and delivering or doing nothing in return. I have not seen that at any of these firms. No company is successful at obtaining a loan modification 100% of the time... nor are they supposed to be, right? The banks are completely inconsistent in how they handle loan mods, and the borrowers don't always tell the truth or cooperate. There are lots of variables. But nonetheless, these companies aren't scams, as they are not taking money and doing nothing in return.
Are we all sure that when a company fails to obtain a loan modification for a client, we're directing our anger in the right place? I mean, when I hire an attorney to negotiate anything else... sometimes he or she wins, and other times not. Why is this so different, and why isn't is the bank that's causing the problem.
After all, it would seem to me that were it up to the loan mod company, every loan would be modified in 72 hours. Every mod would include a principal reduction and an interest rate reduction to 0%. That's how the loan mod company would make the most money. Right?
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