In this day and age a large number of homeowners are defaulting on mortgage payments. It brings additional stress and heartache to homeowners when having to fight loan modification and short sale companies, who promise fixed loans, yet are unable to deliver. The New York Times has pointed out one of these companies called Federal Loan Modification Center (FedMod).
Mr. Soussana, who ran the Los Angeles sales office of FedMod explains, “We just changed the script and changed the product we were selling.” These were the same mortgage brokers who put these homeowners into these terrible loans. Homeowners are so desperate that they will turn to the first company who contacts them. The F.T.C. has taken action on companies like FedMod, and has given warning to 71 other companies. So where do homeowners turn in this epidemic, while a sea of scam companies offer a so called “helping hand”?
One company that has proven to be extremely successful in aiding homeowners is Housing Assist of America. Alex Walsh, homeowner in Los Angeles explains, “I paid a loan modification company $4,000 to modify my home loan. After 4 months of waiting I concluded to call another company. Housing Assist of America (www.HousingAssist.com)
The future isn’t looking very bright for homeowners, as CNN reports “1.5 million homes in foreclosures in 2009”. This staggering number is continuously growing, thanks to the malpractice of companies such as Fed Mod. It is difficult to pinpoint which companies are performing fraudulent work, so homeowners should do their due diligence before taking any action.
