So one of the newest "catch phrases" in the loan modification world is Internal Loan Doc Audit (LDA). It started out as a tool that is used by modification companies to help push lenders over the edge on the decision of their customers modification. Unfortunately, the value of the LDA is slowly going away as it's being abused by companies that are looking for loopholes, and "attorneys" to be able to charge more money. With an LDA you have a double edged sword. There are a large percentage of loans that were sold/transferred to a different servicer that the current servicer does NOT have the original loan documents. Just like any other purchase, if you can't produce the original signed documents, then you don't have much of a leg to stand on should things get sticky. This proves very useful for your modification company during their negotiations. However, it is in fact a semi-bluff. The reality of attempting to sue a multi-billion dollar corporation is that it's not going to be cheap, and in the end you're pushing them far enough to where they just actually find the time to find those documents after all.
There are a ton of "loan modification attorneys" that are very quick to explain to you that most lenders cannot produce the original loan documents and lead you on that they're going to get you your house for free should you just pay their $4000 retainer. What they don't explain, but is usually specified in their agreement is that they will NEVER represent you in court. So if they're not going to represent you in court, then they will clearly not assist you in filing suit against your lender and thus cannot/will not do anything more for you than a legitimate loan modification company. If you are dealing with a licensed real estate attorney in your County (you go in his/her office and have a real consultation) that doesn't do loan modifications, but is actually interested in taking your case to sue your lender then I would be surprised if they even give you a bottom line of what it's going to cost you. They may estimate you at $200-$500 per court hour, but there is NO way for them to give you an honest assessment of how long it would take. If you stand the possibility of walking away with your home for free, you can bet your bottom dollar that he/she is going to want a large sum from you. Problem is if you pay out a ton in legal fees only to not win your case, you're far worse off than where you were before (you thought you had financial problems before......).
There have been a lot of companies in the industry that have given the rest a bad reputation. These are typically the companies that have no interest in the longevity of their company, and are truly out to take advantage of Americans in their time of need. Nine times out of ten, they hide behind the cover of "attorney network" or the newest one "Loan Doc Audit Company". Which basically means that you would pay them the same $3-$4K upfront to do the loan document audit, and they would do your modification work for free. It's a loophole because they are not technically charging you for a loan modification, thus they don't have to comply with the state and federal regulations. At PMC we only utilize professionals that comply with state and federal regulations, not ones that tap dance around the regulations.
Whether you are currently using a legitimate loan modification company, or got sold on the LDA bandwagon keep in mind that the ultimate goal is to get your lender to come to terms and make your mortgage payment to be within your means. It's easy to get "sold" onto the "I'm going to get my house for free" stage, but again like my momma used to say, " If something is too good to be true, it usually is". Most legitimate loan modification companies will offer to do an LDA at no additional charge if really needed anyways........so don't pay more for a catch phrase, contact PMC today.
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