Glendale, CA (PRWEB) February 9, 2009
As adjustable price mortgages and a receding economy threaten millions of property owners with a prospective foreclosure, the demand for loan modification is causing a lot of of the former predatory lenders to resurface and setup shop as loan modification providers.

“Several of the so known as specialists are the selfsame perpetrators who originated most of the toxic, or even fraudulent loans in the 1st spot,” according to former bank branch manager and loan modification specialist Steve Aranda, author of The Full Guide to Loan Modification.

Loan modification is a procedure by which any homeowner can renegotiate with their current mortgage bank to get their payments or interest rate decreased, and in some cases even get a principal reduction in which their mortgage balance is brought down.

A recent report released by Mortgage Asset Study Institute located that mortgage fraud had enhanced by 45 percent in the second quarter of 2008, as compared to the preceding year. And the FBI has reported that the number of mortgage fraud complaints almost tripled in 2009 as compared to 2005.

Mr. Aranda has launched a new web site, http://www.LoanModificationClub.com, to teach men and women how to do their own loan modifications, saving thousands of dollars in fees and avoiding the threat of falling victim to loan modification scams. The kit involves a book, video, computer software, and forms for any borrower
to complete their own loan modification themselves.

Many of the loan modification scams revolve about up-front costs, according to Aranda.

Nevertheless, unless you are an attorney, an up-front fee can’t be collected soon after a Notice of Default has been filed. Additionally, even just before the Notice of Default, only businesses who have submitted certain documentation to the Division of Genuine Estate for review are capable to gather fees just before any solutions have been rendered, and even then only below certain circumstances.

Aranda estimates as many as 60 percent of all loan modification firms are
practicing illegally, frequently utilizing non-lawyer processing organizations to
negotiate for them without having getting legal counsel on employees.

Quite a few organizations are scrambling to get into the profitable loan modification industry now in California alone, there are practically 200 companies legally able to do loan modifications in the state – up from below 30 firms several months ago. Unfortunately, there are also a lot of organizations who are not legally able to do loan modifications but who do them anyway, taking advantage of homeowners who are desperate for a resolution.

“For homeowners with a difficulty mortgage, there are in fact several options besides loan modification, such as forensic audits, quick sale, deed-in-lieu of foreclosure, or even a reverse mortgage for seniors over age 62,” states Aranda. A forensic audit is a assessment of the initial loan documents, searching for loan fraud or problems as a implies to force a lender to settle and accept greater terms.

Aranda recommends any homeowner in problems or expecting a mortgage adjustment need to investigate all their choices prior to doing business with any individual advertising loan modification.

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