State Bar Takes Action to Aid Homeowners In Foreclosure Crisis

Well you've heard it from PMC. You've heard it from the FTC and the Attorney Generals Office. We are very pleased to announce that the California State Bar has now joined the fight in exposing "loan modification Attorneys". In a recent article from the State Bar of California's Website, it stated that the OTC (Office of Chief Trial Counsel) has over 800 active investigations that are related to foreclosure complaints. The Interim Chief Trial Counsel Russell Wiener warned consumers to take special caution when seeking legal representation related to loan modification. He said, "Consumers should not be comforted by advertisements that claim the Attorney is a member of their State Bar, such membership does not mean the Attorney has any special knowledge, experience or expertise in the area of loan modification. In fact, it appears that many of the Attorneys offering these services have little or no prior experience in the area of loan modification." Amen.

The State Bar suggests that consumers be wary of Attorney's offering loan modification services under any of the following circumstances:

• The Attorney in Charge of the office is too busy or not willing to meet personally with prospective clients.
• The business demands payment of a large fee, even before obtaining a prospective clients basic income and expense information about the existing mortgage and present home value.
• The Attorney responsible for the business is not licensed to practice law in the state where the consumer resides.

PMC has spent countless hours researching legitimate Mortgage Brokers who are licensed, and have a desire to help people in their state and surrounding states. During your loan modification process, you will talk personally with the Broker, and they will NEVER be too busy for you. If you want to sue your neighbor, hire an Attorney. If you want a free pamphlet on how to do your own loan modification, contact HUD. If you want a professional that's going to take you from start to finish, charge you a reasonable fee, and keep you informed throughout the process, contact PMC today.

Fighting Mortgage Scams, Government Teams Up

There was a recent article on ABC news stating that State and Federal officials are trying to stop scammers who prey on those facing foreclosure. Last week charges were filed against a California based Loan Modification Company. One of the former employees was quoted saying, "They're convincing people to give money to them in advance, promising to do something that they're not doing, that they don't even have the resources, capabilities, knowledge or manpower to do,". This is the common denominator with these scam companies. Even with the best intentions, 98% of the time they simply lack the knowledge, the resources and overall the manpower to do what they're telling people they're going to do.

This is especially true when it comes to a "Law Firm" that's doing loan modifications. Have you ever been to an Attorney's office? There's generally one to two paralegals on-site per Attorney that's in the office. So if you have two Attorneys, you'd have a total of four people in the office, six if you're extreme. A GOOD processor can handle about 50 files at one time, effectively. Average modification takes about 60-90 days. Now, assuming that the "Attorneys" are doing the same work as their processors and not playing golf, that gives you the ability to reasonably handle about 300 files. If they're bringing in 100 new files a month, then in three months they will be at capacity. Assuming they start getting terms for their first months clients, they will consistently be behind the curve, and they'll have to either expand or stop. Most will choose to do neither as both entail eating into their profit. It's the perfect example of "biting off more than you can chew".... Unfortunately, it's the American Homeowner that ends up having to swallow the miscalculation, and ultimately lose their money and possibly their home when that company gets shut down. Just remember, if a company has substantially more "sales/sign up" people then they do back end processors, it's a pretty good indication that they will have a problem in the very near future.

My daughter is a Freshman in High School and like most girls her age, is overly concerned with her appearance. She's always looking at some "new and improved" way to help her maintain her weight. I'm old fashioned when it comes to fitness and I'm a firm believer that you can advertise whatever you want, it comes down to Diet and Exercise. Same holds true with processing loan modification files. You can have proprietary software, and flow charts, and bank contacts all you want. But unless you have the manpower and knowledge, the company will eventually fold and go out of business. It's kind of like when you go to buy a used car. Great paint job, awesome stereo system, leather interior, sunroof and all the other bells and whistles. That's all fine and dandy, but when the motor goes out on you....you're stuck making a payment on a nice looking that doesn't run. I think a lot of people will agree that those analogies carry true for a lot of things going on in today's world.

PMC has over twenty (and counting...) Negotiators throughout the country. ALL of them have spent their professional careers helping people with their loan applications, talking to banks, and ultimately getting banks to say YES. So they're not just Good processors, they are Great processors. The Negotiators that have contracted with PMC can easily handle 20 files a month. This means that PMC can reasonably enroll 200 clients a month, and EFFECTIVELY manage them without risking files falling through the cracks. PMC will double the number of contracted Negotiators by the end of year, thus doubling the amount of clients that can be effectively managed and processed.

PMC has the only business model in the industry that's actually proving effective. PMC offers the best service, at the best price and is the only company in the industry that offers you protection and recourse. Don't take a chance with a company that may not be around tomorrow, contact PMC today, and let us give you one less thing to worry about.

Federal Reserve Stands Pat on Low Interest Rate

In a recent article from RIS (Real Estate Information Systems), it was stated that there are signs of "winding down" on Federal programs available for the housing crisis. It noted that, "although the central bank will continue with its previously announced plan to buy $1.25 trillion of government agency mortgage-backed securities to support the housing market, the policy-setting committee “will gradually slow the pace” of this and some other purchases." It went on to say that policymakers announced plans to "wind down" their program of buying $300 billion of Treasury securities, another emergency measure that the Fed undertook to drive down long-term interest rates and prop up the economy. This is a clear signal to Homeowners that if you're looking for assistance with your mortgage through a Federal program, you better act soon. A perfect example of this was the Cash For Clunkers program. Just like the HAMP, great program but when the money is gone it's gone.

The article also pointed out that the Central Bank intended on keeping interest rates low. What this means to you is that if you're doing just fine and your credit score is great, chances are you can refinance or purchase a home and get a great interest rate. For the other 90% of the Country, it means that "available credit" from the banks is going to be very limited for a long time. If banks aren't making much money from their existing loans, then they don't have the means to put out more money for additional loans. This means that trying to refinance or purchase a home is going to be very difficult for quite a while. So although it's a Real Estate Cornucopia out there with Foreclosures, unless you're at the Top already, you're not going to have the capital or resources to take advantage of it. This is a perfect example of the "rich getting richer". You basically have a handful of people that have all of the money (banks, investors, etc...). They will keep as much of that money "by any means necessary". Which includes but is not limited to: not cooperating with homeowners for loan modifications, charging erroneous and excessive fees, threatening and misleading their customers, and spending quite a bit of money (commercially and politically) to cast a dark shadow on the loan modification industry.

If you go to buy a car and start talking with a car salesman, let him/her show you a vehicle. Once they start asking you "closing questions", stop them and tell them that you're going to call your friend that's in the car business and ask him what he thinks............like the banks are doing, you'll get a ton of reasons of why you shouldn't call your friend and how dealing with "just you and him/her" is the best way to go. If they can keep you up against the ropes with nobody in your corner, they're sure to win the fight. Moral of the story.......Don't wait for things to "just get better", they won't. Don't expect your lender to just hand you everything on a silver platter, read the news, it's not happening. Don't let your lender "sell" you on the idea that you don't need any help, if you're looking for a good modification, YOU DO. Last but not least....Don't let some con artist scam you out of your hard earned money, contact PMC today and let us help you fight the good fight.

Better Business Bureau Ratings......The Real Scoop

"Better Business Bureau...........A Rating Since 2004" This is the advertisement that I came across while searching for a BBB Accredited Loan Modification Company. I went to www.bbb.org , went to the USA site, typed in my Zip Code to Check Out a Business Or Charity. In the search field, I put Loan Modification. I clicked the box that says "Limit My Results to BBB Accredited Businesses" and hit search. I clicked on the first one that came up. It showed up that they had NR (No Rating).......but the advertisement said A Rating since 2004. When PMC first started, we contacted the BBB for accreditation. They said that we had to be in business for a year before they would give the accreditation. The company that we found started in March of 2004, so it's impossible for them to have had an A rating since 2004. It was stated that the business was listed NR, as the review was currently being updated. This business also happened to be rated through the D&B (Dunn and Bradstreet). When I went to Google, typed in the name of the company and followed it with "complaints", and a cornucopia of things came out. So here is a business that had an A rating through the BBB, rated through D&B, and has a ton of customer complaints. They haven't given me warm fuzzies on their criteria thus far.......

If you research the companies that are currently being investigated or have been shut down by the FTC for fraud and/or deceptive business practices, you'll find that in their Prime, they had an A rating through the BBB. It literally takes the BBB at least a month to actually change a companies rating after complaints start coming in. There was a company that was shut down with over 73 complaints to the BBB in the first 3 months, yet operated over half of their business time (in business for a year) with a B rating or better. It wasn't until 6 months later that the company was issued a NR, and eventually before shut down an F rating. How many customers lost their money and possibly their home because they solely relied on the BBB's accreditation? I believe it was in the thousands. This is one of many companies with very similar stories.

PMC currently has a C- rating through the BBB. We contacted them in February of 2009, they listed our inception as June of 2009. PMC has ZERO customer complaints, resolved or otherwise. So how does a business that has multiple complaints, and is listed on ripoff report.com get an A rating, yet a business that has ZERO complaints gets a C-? Simple. They paid the fees and pulled the strings. When you go to the BBB, you're relying on ONE source for information about a company. Be diligent in your research. If you Google something, you're pulling from Millions of articles and research tables as opposed to relying on one. I'm not saying the BBB is not a valid and viable source of information, but it is one of many resources you should utilize when trying to find a legitimate loan modification company. Like most things in life, "Don't put all of your eggs in one basket...". That's why PMC utilizes multiple negotiators in various states so that our customers are never put in the position of being ripped off. We always have a contingency plan to ensure our customers best interests. Contact PMC today and see what makes us a Different Kind of Company.

Vested Interests......

I was watching TV last night when a commercial for CARFAX came on. It shows the guy with the sock puppet that says "Car Fox" and he's telling the couple that it's just as good and that they don't need a CARFAX. Funny commercial.....but moreover it mirrors the current loan modification industry.

So of course the car dealer has a vested interest in selling his product and making as high of a profit as possible. This is what they have a reputation for.......just like most other businesses. If a car was purchased with an unclean CARFAX, then the value is considered to be less thus leaving the consumer with paying full cost, for less of a car. This holds true in the loan modification industry with both high priced loan modification companies, and the lenders/servicers themselves.

Banks have a vested interest in selling you their products (mortgages, car loans, credit cards, etc...) and making as high of a profit as possible. Since inception, this is what their reputation is. If they borrow the money and pay 3% in interest on it, and lend it to you at 8%, they are more than doubling their costs. It gets worse with credit cards when you're getting charged as high as 32% after fees and interest. If the car dealer took in the car for $20K and sold it to the customer for $40K, it would be considered "ripping off" the customer. In the banking world, this is an everyday occurrence. While they are doing this, they have the "puppet" talking to the media and spending millions of dollars to discourage customers from using any "for profit" agency and redirecting them to either a non profit organization (where they know they can just go through the motions and give out half handed offers as the non profits are inexperienced to know any better) or coaxing them into just working with the bank directly. If the customer gets "sold" into doing this, they are now relying on the multi-billion dollar corporations who have a vested interest in making as much money as possible to magically change their business structure to just "do what's best for the customer". I believe the definition of insanity is attempting the same thing the same way over and over again expecting a different result.

Unfortunately, there are companies out there that are preying on the American homeowner. One of the major complaints is a misrepresentation of services. Due to changing legislation, many of these higher priced companies have changed their tactics using big words like Internal Loan Doc Audit, and Attorney Based/ Law Firm. Loan modifications are not rocket science, they are semi-complicated and the average American can't do it themselves. For a professional mortgage broker that knows what he/she is doing, and implements a set process with maintaining good contacts and relations with various lenders an average modification should take between 7-10 actual man hours. If you're really good you can cut it in half. So assuming that a company charges $4500 (you're paying that company more because they are "really good"), it takes them 4.5 man hours to complete, you've now been charged $1000 per man hour (while they are paying their paralegals who are actually doing the work $8.00 an hour). No wonder so many "Attorneys" are jumping on the bandwagon. If you pay $2000, and between placement, processing and negotiations it takes a total of 10 man hours, you've then paid out $200 per man hour. That's 1/5th of the cost! My old Platoon Sergeant used to tell us "I don't care how you get from point A to point B, as long as you get there and the mission is accomplished".

So if the end result you're looking for is to get caught up on your past due payments and make the payments to be more affordable during your time of hardship, why pay more? You can tell me all you want how the "Shamwow" is bigger, better and worth the additional money, but the bottom line is that it's the same thing I can get at Wally World for half the price. You work hard for your money, don't pay more for the smoke screen, contact PMC today.

Deceptive Business Practices, FTC Announces New Enforcement Actions

The Good, The Bad, and the Ugly...........It's very hard for homeowners to know the difference between who is who, which companies are compliant and which are not. The Good, would be a legitimated loan modification company who is not charging a large fee, nor an upfront fee. A company that does not ask you for interest in your property or Power of Attorney, and one that will actually take you to the finish line. The Bad, are the companies that may have good intentions, but their intentions are compromised when it comes to making the money. They then concentrate more on acquiring more clients than they can actually handle. Eventually, this will catch up to them, they'll get complaints and they will get shut down. And then there's the Ugly....these are the companies that typically hide under "attorney based/backed umbrellas", as they do charge very large fees, the majority of which upfront. They will often base your fee off of your expected monthly savings, rather than having a set fee for their services. Many times, these companies are merely short sale agents that will say they want to help you get a modification, when they really just want to negotiate a short sale and propose it as the only option.
I think the FTC is finally on track as far as making that distinction. In a recent article on the FTC's website5 new companies were just brought under investigation for deceptive business practices. If you look at the common violation from most of the loan modification companies, it's because they are giving their customers unrealistic expectations, and then they are unable to come through. Anyone that tells you that they're going to get you a 2% fixed rate for the remainder of your term is lying to you. Any company that's charging you more than $3K for their services would be considered as a large fee. Companies that play "quid pro quo" with you, "You pay my upfront fee, and we'll send you the documents...." are generally hiding something.

At PMC, our contracted Negotiators are not only compliant to operate in the states they encompass, but they also don't paint their customers with promises of sunshine and rainbows, if it's really raining. PMC matched with our contracted Negotiators offer services that are far superior, and at a fraction of the cost. Our Negotiators are contracted to not charge upfront fees, and have supplied all the required documentation to demonstrate their legitimacy. Don't play the odds on something as important as your home and your money, contact PMC today and see what makes us a Different Kind of Company......

Four Things You Should Consider Before Doing a Loan Modification

When considering a Loan Modification there is a cornucopia of things to consider. After doing them for over a year now, I've narrowed it down to four.
Is It Worth It?
This is a question that only you can answer. It comes down to numbers, but it mainly comes down to whether you want to stay in the home or not. If you owe $600K on a home that's valued around $300K, it's a Little difficult to substantiate getting your loan modified. Being that Principal Reductions are few and far between, if the lender lowers your rate and defers your past due payments, you're still going to be in a horrible equity situation. Granted.....if the payment @4% on $600K is the same as $300K @ 11%, then it still makes sense to stay in the house (especially if your only option is to rent for only a few hundred dollars less). I'll be the first one to advise you to just let your house go if it makes sense in the long run, but don't get baited into thinking that doing a short sale or bankruptcy are your only options.
What Am I Looking To Accomplish?
We get quite a few customers that are looking to "sue" their lenders and/or go right to doing an Internal Loan Doc Audit. We addressed these issues in last weeks blogs, but let's touch the surface again. For most people, their ultimate goal is to come to reasonable terms with their lender that they can afford, and still keep their house. However, it's very easy to get "sold" into thinking you have a chance of getting your home for free. If you are not behind on your payments, you have a 4% rate, and your payments are already well below 31% of your gross income, then chances are that you are not eligible for assistance. If you are behind on your payments and/or have a higher or adjustable interest rate, and have a verifiable hardship, then you stand a pretty good chance of getting something done. The question is what are you trying to get done? Again, for most people if they can simply get their past due payments put on to the rear of the loan, and get the payments to where they can make them, they are more than happy. Remember, "If it sounds too good to be true, it usually is".
If The Lender Accepts and Lowers The Payments, Can I Still Afford Them?
Any legitimate loan modification company is going to ask you this question before they even offer their services. If they're not asking this question, you should probably be pretty concerned why they aren't........This is ultimately what you, the lender and your company should be looking for. For instance, if you bring home $3000 a month, and after your mortgage and your other living expenses you spend $3800 a month, even with getting a $500 a month reduction from your lender, you would still be in a position where you couldn't afford the payment. On the other hand if you bring home $3000 a month and your expenses are $3000 a month, then if the lender drops your payment, you'll have a $500 surplus every month and can reasonably show that you can make that payment. It has to make sense to the lender, and it should certainly make sense to you as well.
I Want Help, Should I Find a Legitimate Loan Modification Company, or An Attorney?
The real answer is neither. It is next to impossible for you to do the research to find your own legitimate loan modification company. For the time you would spend and the risk you would take, you'd be better off just trying to negotiate yourself. Other than charge you more and not be bound to state regulations, there is NOTHING that a "loan modification attorney" can do for you that a legitimate company cannot do for you. So What Do I Do? PMC has researched thousands of mortgage professionals to find Negotiators that have top notch performance, reputation, and overall service. Furthermore, they are licensed and comply with state and federal regulations. PMC has multiple Negotiators in various states, and with our proprietary software we ensure that our customers and their Negotiators are always on the same page, and no matter what happens you are protected along the way. Why play Russian Roulette with something as important as your home? Don't take chances, contact PMC today and see what makes us different.