PMC Loan Mod Blog

New Breed......Same Scam

2009-12-21T10:08:00.000-08:00

Our company was recently contacted by a “law office” that was systematically contacting companies in the loan modification industry. After talking with the gentleman for about 5 minutes, I realized that he had very skewed ideas of how loan modifications were done and who was legal and able to do them. Just like the other firms before them, he went on to explain how licensed attorney's are the only ones that are able to successfully and legally do loan modifications. I mentioned SB94 and how it specified licensed mortgage brokers as the ones that were not only legal, but actually have a professional background in what's required to get a professional loan modification(preparation of financial statements and documents, knowing what the lenders requirements are, submission to the lender, and ultimately getting a lender to say yes!). He agreed, and conceded that they will often outsource their modifications to brokers for their assistance for that reason. This was the first of three major holes in his presentation. Aside from contradicting himself on who was legal to do them, he clearly admitted that the “Attorney” he represents doesn't do ALL of the modifications himself as his presentation indicated. After 10 minutes, I realized that I was dealing with a new breed of con artist, but essentially the same scam.
Misrepresentation is one of the largest problems plaguing the loan modification industry. Aside from outrageous fees, and companies that have no intention or proven process for completion, companies that “bait” their customers by telling that an Attorney is going to be personally working the file from start to finish is a flat lie. In his written presentation to me, it says clearly that they are offering to pay “Independent Contractors” $1000 for their “non-legal work performed”. That work performed was described as the following: 1)Document Preparation, 2)Assisting the Homeowner with the Hardship Letter, 3)Assisting the homeowner with the completing the loan workout application, 4)Confirm that all income stated matches the income documents 5)Turning in a fully completed file with all documents, forms and items listed on the check list immediately. In the end, the offer was for the Independent Contractor to “sell” the customer on the idea that they were going to have everything done by the Attorney thus it warranted an upfront charge of $2495 that went into an trust account. Yet the instructions for remittance on the agreement was a cashiers check payable to the Attorney. This is of course prior to any additional charges that he would charge the customers if they were already in foreclosure, had a sale date, or were looking to short sale if the modification was unsuccessful. If your head isn't spinning yet, wait, it get's better.....
The “loop hole”, is that Attorney's are not subject to CA DRE laws and their regulations. The trust account is in lieu of an escrow account which has been deemed illegal. So in the presentation where it says that they can legally charge the customer upfront due to the trust account, I believe they are correct and that they have in fact found another hole in SB94. He seemed pretty proud about it, and when I explained that if called to the carpet that anyone who knew better would call them on it. He then went on to say that, “The State Bar can pound sand, because we're not doing anything wrong or unethical”, my stomach started to sour. I realized that this guy felt his law office was above the law, and for the most part he's kind of right. What they didn't explain in the presentation that although they may not be subject to DRE laws, the licensed mortgage brokers that they're looking to solicit are. Although we don't necessarily agree with the absolutely no upfront fee clause in SB94, our mortgage brokers nonetheless comply with it until specified otherwise. Furthermore, mortgage brokers that were doing loan modifications previous to SB94 were typically doing progression payments with their customers, where the customers DIDN'T have to pay everything upfront, but rather a very reasonable application, submission, and negotiation fee. However, as my platoon sergeant used to say, “I say jump, you say how high?”. This is the difference in compliance between legitimate mortgage brokers that are doing loan modifications and following the rules, vs. the Attorney's that feel they are above the law, and are still trying to make their big money while they can.
PMC is not only dedicated to our customers whom we service, but also to the longevity of the industry and it's regulation. This problem didn't happen overnight, and it's certainly not going to go away overnight. If companies were half as concerned about genuinely providing a valid service for fair compensation as opposed to doing the “rip and run” business model, then the industry wouldn't be under such speculation. Furthermore, the legitimate companies that do have their customers best interests in mind would not only have more flexibility to operate without such a high accounts receivable (as most legitimate companies do), and actually be able to work with State and federal agencies to get a long term solution, and get this economy moving in the right direction. Everyone agrees that it has to start with the mortgages, we also agree that the efforts thus far have been futile yet very costly, at what point will we agree that a reasonably regulated private industry business model is the way to go? PMC has not only answered the questions plaguing the industry for customers, and business professionals looking to help, but also for the state entities that are looking to regulate. PMC without question proved the safest, most cost effective, and fairest program to all parties involved.

If Mortgage Brokers Do Loan Mods...Why Do I Need You?

2009-12-16T07:43:00.000-08:00

"If the states are endorsing mortgage brokers to do loan modifications, why do I need PMC?" The first reason is research. PMC has literally contacted thousands of mortgage brokers throughout the country inquiring as to their standpoint on loan modifications, their fees and processes. What we found was that almost all of them had only done one or two modifications, and they were semi unclear about what direction they needed to go. The ones that were doing more than that were charging between $2500-$4000 for their services. Many of them were doing them "old school", with not only inadequate protections for themselves and their customers, but certainly making substantially more work for themselves than needed. PMC spent six months, with numerous representatives working 5 sometimes 6 days a week to contact these brokers and establish our Negotiators. This is the time that was taken to take a good hard look, and separate the good, the bad, and the ugly!!!

The majority of the mortgage brokers have preconceived ideas regarding loan modification and may have limited knowledge regarding the process. I think of it like this...A house framer has the necessary core knowledge and tools to build decks and awnings, yet if he hasn't built them before, he will likely have to get a few additional resources in order to efficiently complete the job. This is what PMC offers the mortgage brokers (Negotiators) that have joined our team. Aside from having access to each other for consultation, blogging and exchange of ideas, they also have access to our full broker resource center. Similar to how a mechanic would get the "dealer service manual" to repair vehicles that he may not familiar with. PMC affiliated negotiators have every resource available to them in order to work toward their customers best interests.

Fees. Many mortgage brokers that are able to perform loan modifications simply won't. If their state prohibits them from charging ANY amount of fee before completion, then the broker is dependent upon that customer to actually pay once the modification is completed. Like most people, brokers can't pay their bills and feed their family on IOU's. Unfortunately, without an additional party involved the mortgage broker has no resource to turn to for help other than collection agencies. Many brokers that are performing loan modifications are trying to charge the same high fees that many of the illegitimate and "attorney affiliated" companies are charging (usually $3-$6K dollars). With PMC, both the customer and the Negotiator get the best of both worlds. The Negotiators have agreed to perform the loan modification for the customers for a VERY reasonable fee, and have agreed to not charge those funds upfront. Thus, it eliminates the ability for a customer to get "ripped off". The Negotiator clearly has a vested interest in getting that customer results, their paycheck depends on it! The Negotiators, aside from not having to field sales calls, has PMC's software and resources which makes their job 10 times easier. Additionally, PMC affiliated negotiators, are only assigned customers that have demonstrated the willingness, and ability to pay for their professional services, and furthermore have PMC in their corner to remind the customers of their obligations once completed. This has proven to be the best business model in the industry, for ALL parties involved.

Trust and Oversight. As with dealing with any other modification company, if it's just the customer and that company, there will ALWAYS be room for error and “he said she said”. Some brokers are having a difficult time getting their customers to trust them again, as they were "labeled" as part of the overall mortgage problem. Although this is a relatively unfair assessment, nonetheless it has effected those relationships. With PMC, the Negotiators aren't out trying to prospect for customers. The customers come to us/them. Aside from having a second chance to help their community, mortgage brokers can receive fair compensation for fair work performed and have excellent job satisfaction. PMC's proprietary software not only assists the Negotiator in their work, but it also integrates with the customers Client Dashboard. Here, the Negotiators progress can be tracked and the client will see exactly what he/she stands in the process. It not only reduces the amount of phone calls from customers, but it also eliminates the chance of the customers documents falling through the cracks or the customer not feeling informed throughout the process. With something as important as a home, no one wants to take the chance of things not going right.

PMC has had two instances of Negotiators that have experienced "fatal errors" with their computers. Without PMC's data storage, this would have been a dire problem for the Negotiators and left the homeowner clients in a tough spot. Even if the customers were able to reproduce the documents, the time frame to get caught back up could have easily cost someone their home. As it is, the Negotiator reputations remained intact and the homeowners lost no valuable time in process. PMC's software is not only extremely secure, but the information is stored with multiple levels of protection and redundancy. So even if our building burned, and the Negotiators computer crashed, PMC would be able to get that Negotiator back up to speed within 24 hours. This protection has not only proved priceless to the Negotiators, but to the customers that they are representing as well.

Most of the customers that contact us tell us that we have the best pricing and program and have provided them the most information toward making an informed decision. The majority of the brokers that we've talked with, whether they've decided to join the team or not, have agreed that PMC's business model is next the best in the industry and not only takes the customers best interests into consideration, but the licensed professional's as well. So whether you, or someone you know, needs assistance finding legitimate help with a mortgage, or you are a licensed professional looking to do your part please contact PMC today.

Maryland Targets Mortgage Scams

2009-12-15T14:40:00.000-08:00

Recently there was an interesting internal news letter posted on the state of Maryland's Department of Labor, Licensing and Regulation's website. This newsletter exposed a couple of the current, housing crisis, scams occurring in the state. Each of these are nothing more then “copy cat” crimes that have recently been committed nationwide. These scams are not simply an accidental fault in process, or even an outright illegal operation. These “legitimate” businesses were, in some cases, literally stealing people's homes and equity. These operations made profits, in the millions of dollars, in a very short period of time. There are two major factors attributed to why this happened.

The first reason, of course, is lack of state mandated direction or options for troubled homeowners. The Maryland Commissioner of Financial Regulation, Sarah Bloom Rankin, was quoted saying, “Quite simply...do not pay, walk away. Call your servicer directly or see a non-profit counselor.” when she referred to any company that offers housing assistance for a fee. The majority of the applicants that are now coming to us asking for assistance have already been this route and tried contacting their servicer directly. Additionally many have also conferred with a non-profit counselor only to find that they are right back at square one. Furthermore, CNN Money recently posted an article showing that only 4% of the modifications that are applied for are actually approved. If our professional negotiators had no better than a 4% success rate, our company would have been shut down a long time ago. Furthermore we would have been vilified as incompetent opportunists taking advantage of distressed homeowners. Yet the people that have been elected into positions, to protect our best interests and help us make challenging decisions, are to this minute still advising their constituents to only consider a process that registers a confirmed 4% success rate. If the state would simply admit that their efforts in trying to handle this crisis have, thus far, been unsuccessful, then perhaps they would be open to alternative ideas for addressing the issue. Like other states, passing fair legislation that allows legitimate, licensed, mortgage brokers to perform loan modifications, would be an excellent first step. This would provide homeowners an alternative to the game of “Russian Roulette” troubled homeowners are now playing with con artists and scam companies. This would also provide structure and guidelines for the companies that are truly in the business with their customers best interests at heart.

The second reason is also related to the first. Legislation. HB 361 was written to give oversight to foreclosure consultants. Again, two major problems have occurred. When this bill was first drafted it specified licensed attorneys, licensed mortgage brokers, and licensed real estate brokers as those qualified to act as foreclosure consultants. Well...most “Attorneys” have very little to no experience in loan modifications. They either A) woke up one morning and decided to be a “loan modification attorney” or B) they are allowing some other “company” to use their name and license to circumvent the rules of the state. This has been proven in CA by the CA DRE, and the CA State Bar. Real Estate Brokers specialize in “short sales” right now. They typically sell real estate and do not contact lenders for approvals. Furthermore it would be impossible to have a fiduciary relationship for a loan modification due to the option of short sale if the modification is unsuccessful. Of the three, licensed mortgage brokers are the only ones with a professional history and background necessary to competently perform a loan modification. However, they are also the only ones that were literally “crossed out” in HB361, thus leaving attorneys and real estate brokers as the anointed ones. Virtually every other state either is currently writing legislation or already has written legislation endorsing licensed mortgage brokers as the “chosen few”. The second problem the Commissioner does not seem aware of is in the language of the legislation. Currently it reads that if an individual is “in foreclosure”, then anything further action related to helping the homeowner is considered a “foreclosure rescue transaction” and it is deemed that NO ONE can assist. Presumably, what was intended, is that once a customer is in foreclosure, that anyone that is engaged for help must adhere to certain rules and/or be professionally licensed. Unfortunately, rules are usually enforced on the “letter of the law”, not the individual interpretation. (of course there are always rare cases).

The bottom line is that if the state hasn't put out clear guidelines, how do homeowners know where to turn? Furthermore, licensed mortgage brokers that are willing and able to perform loan modifications, in the state , are obviously reluctant at this point. They clearly will not want to do anything that would jeopardize their professional accreditation.

I recently called the state hotline and talked to the licensing division. It was explained that mortgage brokers are, in fact, the ones that should be doing loan modifications. Unfortunately no one could direct me to where this could be seen in writing. In the past, we've posted blogs like this and the state's legislation was soon changed to reflect much of the information that we blogged about. For the sake of Maryland's residents, we hope that this is the case here as well.

State Bar Takes Action to Aid Homeowners In Foreclosure Crisis

2009-09-30T08:02:00.000-07:00

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

2009-09-29T13:25:00.000-07:00

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

2009-09-25T08:42:00.000-07:00

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

2009-09-24T09:27:00.000-07:00

"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......

2009-09-23T08:13:00.000-07:00

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

2009-09-18T12:34:00.000-07:00

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

2009-09-03T11:30:00.000-07:00

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.

Loan Modifications In New Jersey

2009-08-31T11:41:00.000-07:00

New Jersey has now joined the team of states that do not want their residents to get assistance. I was recently doing some research to find a legitimate loan modification company in the state of New Jersey. What I've found is that are NONE. Governor Cozine and Commissioner Steven Goldman had now passed legislation that prohibits licensed mortgage professionals from doing loan modifications. In order to do loan modifications, you have to have a "debt adjuster" license. Upon researching the requirements for a debt adjuster I found that ONLY a non-profit organization can get a debt adjusters license. If you go to the State of New Jersey's Department of Banking and Insurance's website, you'll get a list of entities that can offer foreclosure assistance, and another list for debt adjustment. Of course you know me......I decided to start calling asking for assistance for my "Aunt Sally" that lives in New Jersey and needs help....This is what I found.

The first list for foreclosure consulting are all non-profit organizations, and were actually willing to help people for about $100. Clearly more than reasonable. So I inquired to their process and what I could hope to expect. Basically they will supply you with the hardship documents (what we give for free), explain how you need to cut your utilities down, and then submit your paperwork to your lender. I asked who did the negotiations.....she explained that they don't negotiate. She further explained to me that NOBODY can negotiate with the lenders and it's just a simple paperwork process. I politely explained my own experiences in dealing with Ocwen and getting my own modification. I explained to her in detail the original offer that was made, the counter offers that I came back with , and eventually the modification I was granted. She then explained to me that "some" of the lenders will allow for negotiation, but most of them are just trying to give out the best deals that they can........No, I didn't ask her what world she lived in or what bottle she had in her drawer. I simply explained that I was looking for a legitimate company that CAN/WILL negotiate for my Aunt, even for a small fee. She advised for my Aunt to contact her lender directly. My final question to her was, "What happens if the lender declines the file, and the homeowner is then left at square one and 3 months behind the curve?" Her response was verbatim, " I don't know......but we've had a lot of banks that are declining the files". I don't know either, but it doesn't sound like that solution is working out so well for the residents of New Jersey.

The second list was for debt adjustment, and they were all credit card counseling services. I asked ALL of them if they did loan modifications. There was ONE company that said that they did them, but only in the state of Arizona. Everyone else offered a referral to a HUD counselor for their mortgage.........of course that's IF you want to enroll in their credit card program for $40 a month. By the way......don't think that because someone is a non-profit organization that they aren't going to ask you for money. The definition of a non-profit is merely that at the end of the year, they don't show a profit on their books. So if they're paying $5 for a roll of toilet paper and they're founders have large paychecks, then they can easily "zero" out at the end of the year, even though they actually did VERY well.

So to sum up you have four choices if you are a resident of New Jersey and would like assistance:
1) Call your lender yourself and negotiate your terms
2) Call a non-profit debt adjuster (you'll end up negotiating your terms)
3) Call a Credit Card Counselor, enroll in their program, and then get a referral to #2.
4) Contact an attorney that is exempt (ANY attorney that DOESN'T practice in debt adjustment).

Maybe I should consider asking Mr. Corzine and Mr. Goldman what they're doing on their lunch breaks........because it obviously isn't protecting and helping their residents.

Scam Prevention Program

2009-08-26T08:23:00.000-07:00

PMC is an advocate of the American Dream. Work hard, raise your family, and have your HOME. Unfortunately, there has been a recent slew of individuals that have scarified homeowners dreams for their own personal gain. I say individuals as opposed to companies as it's typically not the employees of the company that don't have good intentions, it's the select individuals behind the curtains that know exactly what they are doing wrong. These individuals have not only damaged their fellow Americans, but they've damaged the reputation of legitimate companies that truly have an interest in helping. PMC is committed to exposing these wolves in sheep's clothing, and removing them from the herd.

We are proud to introduce our Scam Prevention Program. Over the last few weeks, PMC has contacted thousands of licensed Mortgage Professionals to find the select few that are committed to helping out members of their local and surrounding communities. These Professionals (Negotiators) have met or exceeded our requirements (no upfront fees, no complaints, and compliant with all state and federal requirements), and we are very pleased to work with them. Matched with PMC's proprietary software, it ensures that customers that come to us for assistance will never pay for something that they didn't get, and have their case handled by a licensed and experienced professional.

The number one fear of going with a loan modification company is getting ripped off. PMC has given good Americans a viable option, and a safe alternative to losing your home. Don't play Russian Roulette with something as important as your home, contact PMC today and see what makes us different.

Internal Loan Document Audit......The Simple Truth

2009-08-24T12:40:00.000-07:00

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.

Loan Modifications In Massachusetts......What Happened?

2009-08-20T10:36:00.000-07:00

To date there are only two states in this great Country of ours that have now made it impossible for their residents to get real assistance. Washington D.C. and now Massachusetts have both passed their legislation forbidding ANY "for profit" agency from doing loan modifications in their state. If you are a resident in those states than you have two choices for seeking assistance. You can either get a licensed attorney that can legally charge you an UPFRONT fee anywhere between $2500 and $5000, legally they will ask you for a fiduciary relationship (same as giving a loan mod company power of attorney), and I guarantee that "law firm" will put an inclusion in their agreement for payment on a short sale......OR you can contact a non-profit organization (HUD, NACA, Hope Now) and hope that their volunteers with little to no training are going to get done what you need, and be able to fit you in somewhere amongst the thousands of other applicants. Both Government Agencies and Politicians have agreed that the average American CANNOT negotiate their own modification, thus leaving hundreds of thousands of good Americans without a viable option.

I suppose what I hope and pray for is that the people that put this legislation in place have a problem with their mortgage, and have to wear the same shoes that they've put their residents in. Oh wait......they won't have that problem because they have a guaranteed paycheck every month that comes from those residents taxes. I guess they are just following the Leader right now......after all, "they've got THEIR health coverage....".

Attorney's Doing Loan Modifications

2009-08-19T09:06:00.000-07:00

In our current search for qualified agents in various states to help our cause we accidentally ran across a "Law Firm" doing loan modifications. Wow....I thought I had heard it all, I was wrong. This "law firm" was very quick to explain how licensed attorneys are the only people that are legal to do loan modifications, and that mortgage professionals who have been actually in this business since it's inception, have absolutely no place in the loan modification industry. The basis of the "discussion" was that when a homeowner purchases a home in a state, they have a legally binding contract in that state, when the homeowner doesn't pay the payments, it is considered to be a breach of contract. Thus an attorney is the only one can assist that homeowner. By the end of the correspondence, it was very clear that they had no idea what they were talking about, and should probably go back to business transactions, disputes and commercial real estate, as that is what they've been doing up until about 9 months ago.

First off, a homeowner does NOT have to be late (hence in breach of contract) to be eligible for a loan modification, PERIOD. Anyone who says otherwise obviously hasn't read through the Federal HAMP guidelines. Next, this firm indicated that 90% (yes NINETY) of the time, applicants should be advised to move out of the home, as opposed to attempting a modification. Their reasoning is flawed, as they are only taking into consideration 5 year modifications, not permanent ones that are being done just as often as the 5 year. The best part of it all, is that this law firm speculated that a mortgage professional wouldn't have the clients best interest at hand, as they didn't have a fiduciary relationship. Definition of fiduciary is: "An individual, corporation or association holding assets for another party, often with the legal authority and duty to make decisions rgarding financial matters on behalf of the other party." One of the major complaints by the FTC and AG's offices is that loan modification companies were asking for Power of Attorney, well in essence that's exactly what this law firm is claiming has to happen. Now if I'm a homeowner, do I want to A) give someone/a company authority to make decisions for me....or B) have someone get me all of the necessary information so that I can make an informed decision? Keep in mind that the reason that "attorneys" are able to do this, is because they are currently EXEMPT from the state and federal regulations. Luckily, the FTC and AG offices are seeing the smoke screen and are one by one making it clear that they are only exempt if they are operating within the scope of their practice. Problem is that there are NO attorneys that are doing loan modifications that are operating within the scope of their practice, because it wasn't even a "business" until a little over a year ago. I'd like to see the "Loan Modification 101" class that's apparently at Harvard, because I haven't heard of it yet.

This firm advised that homeowners who are need should contact their lender first, if denied, they should then contact an attorney (thus stating that loan modification companies should not be in existence as they serve no purpose, but.....they are doing loan modifications?). OK, maybe they are not aware that most lenders give homeowners ONE chance to do a modification (since March 6th). If the client submits their documents unassisted and is denied, what is that attorney going to do? (Advise them to move out and short sell according to them). As my Platoon Sergeant used to say...."WRONG ANSWER". If it takes 30-90 days for a modification to get complete....how many times do you want to resubmit paperwork. If you do it once, then hire a company you're looking at a total time of about 6 months. I don't know about you.....but I just can't wait that long. My momma used to say "Do you want to do something right ONE time, or do something wrong numerous times?"

I hate to even talk about this story because it just makes me queasy.....but it needs to be exposed. One of our clients had hired an attorney to file for Chap 13 bankruptcy, this client had been delinquent on their payments and were nearing the "sale date" of their home. 9 1/2 times out of 10 once you've filed BK, the court will issue a "stay" on the sale date and continue with the BK proceedings. This attorney not only advised her to not try to modify her loan, but advised her to just sell the house to his friend that is interested. Her attorney advised her that there is no way the court will issue the "stay", and that selling and renting from his friend was pretty much her only option. What she didn't know at the time is that the court had already issued the stay, and postponed the sale date to August 13th. Under her attorney's advice, she removed the property from the BK which released the stay and allowed her home to sell in July. She contacted us under the pretense that she had until August 13th to get something done, and it wasn't until we talked to her lender that they informed us that the house had been sold back in July. But wait, there's more........the timing of the release of the property wasn't correct, so they refunded his friend back his deposit and did in fact push the new sale date to August 13th. Her attorney not only told her that it was in fact sold (when she had the notice from the court saying it wasn't) and that she needed to start paying rent, but the lender was in cahoots and also said that it had been sold. Funny thing is that when we asked the lender to provide proof that the property was sold, we suddenly didn't get any returned phone calls. So we advised her to contact the state Attorney General to file a complaint against both her attorney, and the lender, and to retain a different attorney that can refile before the 13th.........Wow.

The cold hard truth is that a "slow" Mortgage Professional would run circles around any attorney when it comes to loan modifications. They know what the banks are looking for, they know how to get it to "make sense", they are familiar with LTV, PTI, DTI ratios and have made their living getting banks to say "YES". Attorney's have made their living getting Judges and People to say yes, not banks.

It comes down to who you trust.....do you want to work with an attorney that isn't bound to any loan modification regulations, and 9 times out of 10 will have a short sale inclusion in their contract, which says that if the modification does not go through, that you have automatically retained them to negotiate the short sale, and get paid X amount of dollars from the proceeds (which, if they get paid either way, what vested interest do they have in making sure it's done right?). Or.....do you want to work with a company that's regulated by the individual states and the FTC, has a clear vested interest in completing the modification (as they don't get paid if they don't do the work), and that utilizes people who actually have experience in this field.

Just like any other field of work, you don't call a carpenter to unclog your drains and toilet. You don't call the Electric Company to help you change out your light bulb. Why would you hire an attorney to do a loan modification?

Ocwen Loan Modifications

2009-08-18T08:27:00.000-07:00

Ocwen was not a MAJOR recipient of government funds, yet they've certainly received their fair share. As of April 16th, they have received $553,380,000. Hard to believe that when a bank receives half a billion dollars, that they're NOT considered to be a major recipient......2,517 modifications started, which is 5% of their eligible delinquent loans. This puts their average cost at $220,470 per modification. I personally have Ocwen, and know first hand how difficult they can be. Aside from getting routed to Sri Lanka, you just can't get a strait answer. First of all, I'm not Skippy on them outsourcing their call center overseas, we certainly have plenty of Americans that can answer phones and give people the run around......Secondly, they one of the HIGHEST cost per modification figures (I believe ranked third). If you have or have had Ocwen as your mortgage servicer, we invite you to post your comments about your experiences with Ocwen. Whether you have attempted an Ocwen Loan Modification or not, we'd love to hear from you. Thanks again for all your support, we'll get on to better topics later this week......

Taylor Bean and Whittaker Issued Cease and Desist Order

2009-08-13T09:09:00.000-07:00

Taylor Bean and Whittaker (TBW) was recently issued a cease and desist order for doing mortgages in the state of New Jersey. There were several violations and numerous complaints. The Attorney General is revoking their mortgage license in the state. Keep in mind that this order prohibits them from acquiring new business, and eventually they will have to give/sell all of their clients to other lenders. If you've applied to Taylor Bean and Whittaker for a Loan Modification, you may have some questions about how this is going to affect you. PMC works with numerous Agents and lenders nationwide, so no matter who your loan is sold to, PMC can assist you in getting your questions answered.

Wells Fargo Loan Modification........

2009-08-13T08:44:00.000-07:00

Wells Fargo Loan Modifications........Wells Fargo was one of the biggest recipients of government funds coming in at $ 2,410, 010,000 as of April 13th 2009. They've done 20,219 trial modifications. This is 6% of their eligible delinquent loans......This makes their average cost per modification at $119,195. We invite past and present Wells Fargo customers to share their experiences with this lender. Whether you've attempted a Wells Fargo Loan Modification or not, we would like to hear your comments.

Bank of America Loan Modifications

2009-08-12T10:40:00.000-07:00

Bank of America......The Largest recipient of government funds at this point. They have received $5,987,280,000 as of April 17th, 2009 with a total of 27,985 trial modifications. This is 4% of their eligible delinquent loans. This makes their average cost per modification at $213,946. We invite Bank of America/Countrywide customers past and present, whether you've tried to do a Bank of America Loan Modification or a Countrywide Loan Modification or not, to share your experiences whether they be good or bad. We would appreciate it if you could give an overall rating of Bank of America as your mortgage holder, and give specific comments to the Bank of America Loan Modification process or the Countrywide Loan Modification process if you have some input on the topics. Thank you in advance...........

Chase Loan Modifications

2009-08-11T09:06:00.000-07:00

This week we're changing things up a bit. We want more input from our readers. Today is Chase Loan Modifications. JP Morgan Chase has received $3,552,000,000 as of April 13th 2009. They have done 79,304 trial modifications. This is 20% of their eligible delinquent loans. This makes their average cost per modification to be $44,789. We invite Chase customers current and previous, whether you have tried to do a Chase loan modification or not to share your experiences regarding phone correspondence, mail and email correspondence. We would appreciate it if you could give your overall rating of Chase as your mortgage holder, and give specific comments to the Chase loan modification process if you have some input. Thank you for the overwhelming support, we appreciate it.

Fair Business Practices.....This Is Still America....Right?

2009-08-06T08:24:00.000-07:00

Yesterday's blog was such a success, we've been asked to do a part two. Many loan modification companies have come under fire recently between clients that have been taken advantage of, government agencies, and lenders. The majority of these complaints have three main components.
1) Customers have paid for a service and did not receive the service that they paid for.
2) The customers were asked to pay up front fees, typically very large fees to the tune of $4000-$5000 per modification, per property.
3) They lied and used deceptive business practices.

Very reasonable complaints in any business setting. We've mentioned this before. Although vendors of all sorts have the God given right to sell their products for whatever they want, the consumer also has their God given right to do diligent research before they purchase those products, and make sure they're not only getting the best deal, but also get what they're paying for. Furthermore, if you're telling the people that are inquiring about your business practices that you're doing something right, when you really aren't......that's just plain shady. There's a need for legitimate loan modification companies, part of which is really giving the oversight (making sure that they are giving fair deals) on lenders that the Government is currently not giving. This is why PMC is committed to matching qualified homeowners, with legitimate and qualified loan modification companies and ensuring that ALL parties best interests are represented throughout the process.

Let's examine these three major complaints, and contrast them with what's CURRENTLY going on with the majority of the lenders.
1) At this point the Federal Government, more over the American Taxpayer (homeowner or not) has paid for a service, and we have not received that service. We've dished out a total of 1.487 Trillion dollars between the initial bank bailout, cost of the stimulus bill, the American Recovery Act and the American Reinvestment Act. In addition, we've given another $20.1 Billion since the HAMP program was released. We currently have a total of 9% completion, and 235, 247 TOTAL trial modifications started. The FTC is after companies that are not doing what they're clients paid them to do, yet they are currently endorsing companies that are doing that exact same thing but on a much grander scale. Furthermore, it's Federal money.....doesn't that make it a FEDERAL crime???
2) We have ALL now been asked to and have paid an up-front fee. The $20.1 Billion dollars mentioned above has been GIVEN, not promised. So the American Taxpayer (homeowner or not) has paid an AVERAGE of $85,483 per successful TRIAL modification, and has paid that money upfront. It's been mentioned by numerous Finance Departments and AG offices that $1500-$2000 is a FAIR fee to do a loan modification. I would suggest that $85K would clearly be UNFAIR, and not "reasonable and customary". Wouldn't this be the exact example of an Unfair Business Practice?
3) If you don't think that lenders and servicers have lied, and continue to lie, you are definitely fooling yourself. Let's reconvene on why we're in this situation in the first place. Not properly disclosed terms, HUGE closing costs, HUGE prepayment penalties, VERY high interest rates that were borderline if not predatory. It seems like the hunt for "predatory lending practices" was quickly phased out with the "loan modification witch hunt". I think the multi-billion dollar corporations have a little bigger media budget than most...... My mom used to say that, " Everyone makes mistakes, it's what a person does to rectify and learn from that mistake that the person is judged by". So if the person/business has not only NOT rectified the mistake, but continues to make new ones....what are we supposed to do? We have numerous videos, blogs, articles and interviews that have shown what they have done and are still doing, yet we not only allow it, but we continue to give them more of our hard earned money.

If you take an average home loan of around $200K, used a 5% interest rate over a 40 year term, the homeowner will end up paying over $262K in just interest over that time, the total paid back would be $462,912 over TWICE as much as they paid for it. Although clearly in the advantage of the bank, this is a semi-FAIR deal. Now use that same scenario, but use a 9% rate. Now you've gone to $540,510 in interest, making your total $740,510.40. Come on now, when is enough enough? If the Government would really like to make a difference, then let's employ a plan that's actually working. Let's use legitimate modification companies

Obama On Track To Help Four Million Homeowners

2009-08-05T10:20:00.000-07:00

In a recent article from CNN Money, the Obama administration said that it was on track to help Four Million Homeowners. The initiative was announced in February and the first institutions to join began accepting applications in April. Also in the article, it says that only 9% of those in need are actually getting help right now. Coming into August gives us a full six months of the current program, which means in theory we'd be 18% by March of next year, and on to 54% within 3 years. I'm confused on how 54% in three years is said to be "on track". In any kind of test, especially academics, 54% is an F. If my company only had a 54% success rate in a three year period, we would have been shut down within 6 months. Furthermore, we sure wouldn't be getting MORE money for our failing efforts. So who's fault is it that the program is failing? The administration? The lenders, who?

I would venture to say that it's primarily the lenders fault. They've been given the funds, given the program guidelines, and they are just not performing. However, the fact that the administration hasn't held these lenders more accountable has certainly not helped things. To their credit, they've recently started using Servicers Progress Reports to hold institutions responsible for their performance. The monthly reports will allow the public to see which institutions are lagging in implementing the plan. However, if you're a homeowner it's irrelevant as to whether there are some banks that are doing good and some that are doing bad, because either way they have no way of changing their lenders. "It is what it is" as there's nothing the homeowner can do to effect their lenders performance. The article noted that "Servicers contacted acknowledged they need to improve their performance, saying they were committed to the president's foreclosure prevention plan. They also stressed that they were doing many modifications outside of the administration's initiative." I don't think it's so much a question of being committed, but more a question of 1)being ABLE and 2) where the conflict of interest comes in between the servicers and the investors they essentially work for. These are two HUGE things that it just seems are glanced over, and we throw more money at it instead of addressing those issues.

Wells Fargo. I think they are putting on one heck of a front. Let me show you why..... In the above mentioned article, Wells Fargo said it will eliminate its backlog within weeks, attributing it to the time lag between when the government announced the initiative and when it released the guidelines. It did not start modifying loans owned by private investors until the end of June, though it began adjusting loans owned by Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) in April. The statement insinuates that they are behind because they didn't start doing these until June and April 2009. The reality is that they've been doing them since June and April of 2008. What makes them think they are going to get done in a few weeks, what they couldn't accomplish and keep up with in over a year? Mike Heid, the co-president of Wells Fargo Home Mortgage said that they just added 4000 employees to their loan workout division. This poses two big questions. 1) What is the training/experience level of these 4000 people that homeowners will be trusting their lively hood to (if not previously experienced, how long is the training course to get employees up to speed on their job requirements?) 2) If the average employee is making $2000 a month, and Wells Fargo is losing money hand over fist, where can they get the 8 Million dollars a month in capital to pay for those employees? If a LARGE call center/office will have 200 employees, that's 20 NEW facilities that they would have opened to host 4000 additional employees. Even if they are leasing existing structures instead of building new ones, there are HUGE costs involved (phones, Internet, phone service, electricity, rent, etc...). So either these 4000 new employees are working out of their house, or someone is blowing smoke......

There was an additional article on CNN Money that coincided with the previous article. It gave the synopsis of the Servicers Progress Report. The article breaks down who the lender/servicer is, how much taxpayer(bailout) money they've received, how many trial mods started, what percentage of their eligible applicants they have modified. If you look at the report and compare how much taxpayer money they've received vs. how many mod's they've started, you'll see that some lenders have received up to $770K in taxpayer money PER modification they do (I want their job...). The top recipients of taxpayer money have been in order 1) Bank of America 2) JP Morgan Chase 3) Wells Fargo 4) American Home (AHMSI) 5) Citi Group 6) GMAC . Only one (AHMSI), didn't report back so far. Of those banks that reported back, Bank of America was the highest at $213,946 per mod (received 6 Billion, with only 27,985 done). The lowest was Citi with $39,150 per mod (received 1.1 Billion, with 27,571 done). A modification should not cost the American taxpayers anywhere near either of those figures. If modification companies are getting shut down by the FTC and AG's office for charging unreasonable fees.....where are the FTC and the AG's office while banks are charging the government an AVERAGE of $85,483 per modification they are doing, and this is with an AVERAGE of 9% success rate? Meanwhile, banks are joining the witch hunt advising their clients to not use a modification company for fear of being ripped off. Can we say, "Pot calling the Kettle Black..."

What adds insult to injury is that the banks that have received the most money, and have the highest "average" per modification also have some of the lowest percentages of assisted eligible delinquent loans. Wells Fargo is at 6% and Bank of America is at 4%. This is a clear indication of the lack of oversight. If I'm the president of a company, and my investors just gave me 6 Billion dollars, and six months later I was only 4% into the job I would be FIRED!

There was one lender that definitely stood out from the rest, Saxon. Saxon Mortgage Services has done the most with 212,130 trial mods started, and only $632 Million received). That makes their average cost per modification around $2979. As good as they are doing, they've only touched 25% of their eligible delinquent loans, which means they still have another 636,390 that are still needing help. What most people don't know, the Government is overlooking, and the banks would like to hide from everyone is what Saxon is doing that is making them so successful. Drum roll please..........they hired a modification company to do the work for them. This company was contracted middle to late last year, and has been contacting homeowners directly on behalf of the servicer in order to come to terms between the lender and the homeowner. Saxon realized that opposed to drowning in additional costs to try to hire, train and employ people, they would just pay someone else to do it. Not only has it worked out well for them, but it seems to be working out well for their customers (although decisions tend to lean more in the lenders favor, as the modification company is hired by them). Above all, the idea is working best for the American taxpayer.

It pretty much boils down to two choices. 1) We throw money at the lenders and hope they are willing and able to do what needs to be done 2) We allow legitimate modification companies to do their jobs under reasonable regulation, and encourage lenders to use them in lieu of asking for more bailout money. If the money was coming directly out of your checking account, what would you choose?

Attorney Based Loan Modification, Pros and Cons....

2009-08-04T11:45:00.000-07:00

I wanted to take this time to write an impartial analysis of Attorney Based Loan Modification Companies, Law Firms that do loan modifications, and loan modification companies that have attorney networks. It seems to be the going trend. So let's look at the Pros and Cons (no pun intended) for the consumer, the company, and the oversight (FTC, AG's office, etc...).
Attorney Based/Backed Company:
Pros: Representation by a third party, and of course the bank doesn't know whether it's a legitimate company or not. You have a chance that they'll hear "attorney" and just snap to.
Cons: It's a bluff. An attorney based company means that they have an attorney on site. What is that attorney's actual work schedule, is he/she actually the one doing my negotiations? The answer would be NO. The attorney is there to do simply that, "back" the company and allow them to use his name to circumnavigate current legislation regarding loan modification companies. If you're attorney backed/based, then you can legally charge upfront fees, excessive fees, and they're not required to offer you any type of refund or cancellation abilities. They are exempt. FTC and AG offices are wising up to this loophole.

Law Firms that "specialize" in Loan Modifications:
Pros: You are usually dealing with an actual law firm. There are actual attorney's there, and are usually available to make a call to the lenders, if needed.
Cons: The idea that there are law firms out there that "specialize" in loan modifications is kind of absurd. I've never heard of a "loan modification attorney" until about 6 months ago. Usually, the attorney's have little to no experience actually processing and negotiating for customers. Like most of their cases, they have paralegals or assistants do the work for them, they bill $300 an hour and pay the paralegal $13.00 an hour. So you're paying for attorney's wages, to get the same results you would get from a legitimate company that's usually less than half the cost.

Attorney Networks:
Pros: They are currently legal to do modifications in states that other companies cannot do modifications in. They accomplish this by having numerous attorney's in a "network" throughout the country, so that they can use a licensed attorney's name in that state thus being compliant with the state's regulations.
Cons: Just like the others, you still don't have the attorney doing your modification. As a matter of fact, that attorney probably knows absolutely nothing about you, or your situation. They just get a check for X amount of dollars for every client that the company retains and uses that attorney's name for. If the modification company that is using the attorney network gets shut down by the FTC with a cease and desist order, are those numerous attorneys in the network going to step and handle the modifications that were promised? Of course not, the modification company was the one who made all the money, not the attorney.

The reality is that most real attorney's are used to making good money. That's why they went to law school and paid through the nose for it. If an attorney is used to making $300-$500 per court hour, and it takes let's say a minimum of 10 days to 2 weeks to get a modification, how much time would they actually have to invest with you? Let's say a total of 15 man hours to get it done start to finish. That's $4500 on the low end, and $7500 on the high end. So if they are NOT charging you that much, I'd be very skeptical on what's missing, because it's usually the attorney that's missing. If they are charging that much, then it's just a question of how much you want to pay. If you're accustomed to paying substantially more for things than they are worth, then going this route would probably work out well for you as you wouldn't know the difference anyway. If you're opposed to paying twice as much for something just because they gift wrapped it for you, then contact PMC today and find out what makes us different.

Cash For Clunkers

2009-08-03T12:31:00.000-07:00

I was coming into work this morning when I heard on about four different radio stations how successful the "cash for clunkers" program is. So successful, that they have ran out of funding for it, and have already got another billion dollars approved for it. Being that I have friends that are in the car business, I'm glad to know that business is picking up for them. Here were a few things that disturbed me:

1) Your vehicle has to get 18mpg or less to qualify, NEW vehicle purchased has to get at least 22mpg. What if you have a car that gets 19mpg, and you're looking at one that gets 30mpg? Are you just SOL? It's a substantially better mileage increase, yet you would not qualify.

2) I Googled "cash for clunkers", and the first two that came up were Honda's website and then Toyota's. Now I admit that both are decent at trying to produce American jobs, but the end dollar still goes overseas. So we have a government program, funded by American tax dollars, we have American car manufacturers that are filing BK, why didn't we use this program and gear it towards DOMESTIC purchases?

3) I'm hearing mixed reports....some say that getting approved is next to impossible, but on the other hand someones getting approved as they've run out of funds.

Here are a few things that are genius about it:
1)One of the major problems in the car business hasn't been finding customers, it's been getting banks to buy the note for those customers (getting them approved). One of the major factors for an approval is the LTV (Loan to Value Ratio). How much are they borrowing vs. how much is the asset worth that they are purchasing. Well, with a $4500 "bonus", getting the LTV to make sense is a heck of a lot easier than without it.

2) It has definitely stimulated the car business as a whole, for now.

Most people consider there biggest assets in this order: 1) Home 2) Vehicle 3)Boat/RV 4) Personal possessions. So if you're home is essentially more important than your vehicle (makes sense, unless it has a bathroom in it....), then why didn't we come up with a similar solution for the housing market? "Match payments" You're behind 4 payments...., you come up with two, they come up with two.... Of course the best solution was brought up in the last blog entry. If you're taking our money in taxes, we have to pay that money back through our taxes, why didn't we get our break instead of the banks? Politics. If you give American citizens money, you can't send "Guido" in afterwards to get some of it back through contributions etc.... If you give a company that kind of money, the return back from those companies via contributions etc. can be huge. Food for thought.

Where's MY Bailout???

2009-07-30T13:53:00.000-07:00

"Bailout". That's been the big term used over the past 9 months. Of course they called it as it was when they labeled it a bailout, but now they've changed the names to be more P.C. So the Big Three got a bailout, we've handed out over $700 Billion to the banks for their bailout, where is the bailout for the American Taxpayer?

The Census Bureau says that we have 307,042,500 total American Citizens in this country as of today. A recent article in CNNMoney.com answered the question of "If we just gave all the bailout money to taxpayers, how much would we each get? I've seen $25K, $300K, 1Mil- what's the real answer?" CNN took the total of the bank bailout, $700 Billion, and added that to the $787 Billion estimated cost of the stimulus bill, the American Recovery and Reinvestment Act. That totals $1.487 Trillion. If you divide that number by the 156.3 Million Tax Payers, you would come up with $9513.76 per U.S. Taxpayer. First I was shocked to realize that almost HALF of our "citizens" aren't paying taxes. Second, I thought of exactly how much $9500 was.

It seems that everyone is aiming the "Average American Mortgage Payment" between $900 and $1400 a month. So let's use the higher figure for good measure. If the average American is 4 months behind on their mortgage right now (average time it takes in delinquent payments for a lender to begin foreclosure proceedings, this varies by state), that would mean they would need to come up with $5600-$6000 in order to get their mortgage right. On the extreme, that would leave them with $3500. Let's say they spent $1000 of that to catch up on/payoff their credit cards, $1500 either catching up on their car payments or using it as a down payment to get a new one (either one helps banks), and they blew another $1000 on whatever they wanted. If you notice, the majority of their money would have went right back into banks in some shape, form or fashion.

Let's compare to see what would work better for EVERYONE.
Giving Money To The Banks Directly:
1) Majority of the money was kept at the top, CEO's were rewarded well and lavish lifestyles were kept up.
2) Numerous smaller lenders went out of business and were purchased by larger banks.
3) Numerous banks had HUGE layoffs in the majority of their departments.
4) Foreclosures continue to rise
5) Defaulted Payments continue to rise
6) Job Losses continue to rise due to weakened economy
7) Government gets reports that banks are unable to keep up with modification requests
8) Banks get all the money and you're still at square One.
Giving Money To the Taxpayers Directly:
1)Majority of the money goes right back to various lenders.
2) Smaller lenders are able to stay in business as they now have paying customers again.
3) Banks can warrant additional staff as they are cash flow positive again.
4) Foreclosures would be drastically cut as mortgage payments would be current.
5) Economy would be strengthened through raw purchasing, thus making businesses cash flow positive, and able to warrant current or additional staff.
6) Auto Industry would have survived just fine. If people are NOT losing their homes, then they do buy cars. If we took the money we gave to the big three, and just incentivized the purchase of domestic vehicles, they would have had the money they needed on their own to make the factory changes they needed to. All three already had their plans laid out for more fuel efficient vehicles (GM- Chevy Volt, Ford- Numerous Hybrids, Chrysler- ENVI series, and GEM cars), they just needed to move some metal in the meantime.
7) Banks end up getting all the money anyways, but the average American is in a much better spot.

Now, I'm no mathematician, but I'm pretty decent in the common sense department. Option B seems to be the far superior option. "Well all the money's gone, what do we do now?" Unlike most business transactions, we can't just "get a refund" on that bailout money. Funny how that works.....Unfortunately about the only way that you can get YOUR "bailout" is by doing a loan modification. If you're behind on payments and have a good reason for it, chances are that PMC can assist you in getting those past due payments deferred, and the future payments reduced to be more in line with something you can actually afford. I know everyone to include myself would much rather just have the $9500 and call it good, but we're at least pleased to give good Americans a viable alternative. They got their bailout, why shouldn't YOU get some assistance?

Smoke and Mirrors Vs. Good Business

2009-07-29T08:10:00.000-07:00

When I was 16 and in High School I worked at Arby's for my first job. I loved it. Fast paced, multi-tasking (if you want to) and you get to learn all facets of the fast food industry. I started in the back washing dishes and cleaning the restrooms, then I got to do prep work, then the register, then I got to work on the line making sandwiches. I've always had a thing about going somewhere and getting a sandwich or burger that looks like the picture. So when it came down to being my job, I made sure that every sandwich I made was as close to that as possible (impossible as it's a professional picture...). Yes, I love the movie "Falling Down". Some may feel that I'm just being picky, but when you think about it, shouldn't we be? We're paying good hard earned money for something, we should get what we were "sold". Paying the price on the menu and getting the sandwich that's shown, as shown would be a perfect example of GOOD BUSINESS. I would venture to say that the sandwich delivered to you that looks like it's been under the lamps for an hour, smashed, and THEN served to you would be a good example of SMOKE AND MIRRORS.

Most of the lenders have openly admitted that they are inadequately staffed to handle the influx of requests, and it's logistically impossible for them to process them efficiently. However, some are trying to fool the government and the public by saying that they are doubling their efforts. Here's some food for thought: We all know that the banks are in financial trouble right? This is why we gave them their bailout, right? If the banks are dependent upon mortgages to be paid to survive, and the number of defaulted mortgages is still rising, then the banks are still currently LOSING money, right? So what business do you know of that is currently losing money, that has the investment capital to open up additional call centers and staff additional employees. Last I checked, most of these banks just had pretty big layoffs.....

"Why are they trying to fool everyone then?" Well, media rules. If the media says that they're doubling up, then it must be so...... The reason for the hoax is to discourage both government agencies, and the public from using modification companies. Why? That's pretty easy, if they can make you and others think that they're truly acting in their clients best interests (historically has not been the case), when they're really looking out for their own wallets (which has historically been the case with ANY bank), then any offer I bring they bring you will be "their best offer". Who would know otherwise? What better way to keep you and others in the dark then by going on a "witch hunt", when they're in the caves casting spells. If you have a modification company involved, then they usually not only know what you're lenders requirements are, but they should also know what other clients are recieving from that lender. The investor's behind the curtains have multi million dollar servicing companies working to make sure that their best interests are being represented. Who do you want to make sure that yours are?

Some Banks Won't Budge On Modifications

2009-07-28T09:36:00.000-07:00

I think if I drew a picture of an average home loan on the chalk board, and showed even BASIC cost/profit/loss to my 12 year old, he would understand the need for modifications. However, regardless of how much financial sense a modification may make, some banks are still just not budging. Now these banks are becoming fewer and fewer as they are getting bought out by larger banks or going under because they opted to not help their customers.

We have a client that received a modification back in February, and even though the new HAMP program didn't come out until March 6th, they are saying that the homeowners can only get ONE modification during the life of the loan. WHAT? So if you gave me terms before there were guidelines, and now those guidelines are present and the terms offered were substantially less than what I should be receiving.....There are many lenders that even have a re-modification department, for people who have done previous modifications. The standard guideline is that there has to be an additional hardship that happens between the time they were granted their first modification, to when they are asking for the second. Now if people were baited into forbearance plans where their payments went up, then chances are they were unable to make that obligation. Common sense, "If I had a hard time trying to pay the $2200 a month, how am I supposed to come up with $2800 a month?". What makes PMC different is that we didn't accept that answer, we formulated a new plan of attack and executed it. Most companies would have called their client to tell them that there was nothing that they could do, but how they were keeping a large portion of their fees because they have time put into it "just read it, it's in the contract that you signed with us.......". Calling Penn and Teller........ At PMC, we have strict oversight on our agents to ensure that they push the envelope with EVERY client that we have.

"If you only have ONE shot at trying to get a modification after March 6th, why do people still try to do it on their own if everyone else is failing at it?" In a recent article it sited the Freddie Mac/Roper poll where it asked, " If home foreclosure affected you, what best describes how you would feel?" Here were the responses:
38% Scared
35% Depressed
9% Angry
8% Embarrassed
9% None of These

People who are having financial difficulties don't want to spend their last dollar, only to find out that they've been scammed by some company. As reflected, most people are scared. Scared of losing their home, scared of getting ripped off, scared of what the bank may actually say, scared of how their kids would be affected. This is a very uncomfortable position to be in, and with the media and various agencies just fueling the fire, it's very hard to know where to turn. The question of, "Why would I pay someone to do something that I can do myself?" will often come up. Well, there's a reason why there are "trades" in this country, and it's usually specifically for that. If you have a clogged toilet, you can get a plunger in lieu of a plumber. But if you're pipes are leaking, chances are you're better off calling a plumber, then trying to go to Home Depot to get pipe, pipe cutter, measuring tape, flux, solder, torch and propane and the "Plumbing For Dummies" book. If you have a basic question you need answered, call your lender and ask them. But if you need/want real help (leaking pipes), call the professionals.

Working, Retirement and Social Security

2009-07-27T15:25:00.000-07:00

I was having dinner with my folks this weekend when the topic of Working, Retirement and Social Security came up. My mom just reached the age to file, and my step dad is 72 years old. He's one of those guys that when people come across him, they say, " they don't make guys like that anymore". He was UDT in Navy during the Korean War, for those of you unfamiliar they were referred to as "Frogmen", and are currently named U.S. Navy Seals. He's worked ever since he was 16 years old, and I've heard the story of how he got his first job more than once. He applied at the store down the street and the owner told him he couldn't hire him. He kept going back every day for 2 weeks asking "can I work today?" Finally, the store owner game him the job of sweeping the floors. Well here we are 56 years later, and he's still working. The problem is, that he is limited on how much money he can earn before he is penalized through his social security. WHAT? You mean that after 56 years and counting of paying into it, he's now "capped" on what he can make? Did the economy give him a "cap" on inflation, or are they still paying the same high cost for everything that everyone else is. Sorry....the 50 cents a cup senior discount on his coffee doesn't quite cut it. I've seen his AAA, AARP, and NRA card, I haven't seen his "INFLATION CAP" card......

So let's talk about minimum age. You currently have to wait until you're 62 to file. There's a "sales pitch" from the SS administration that you should wait until you're 66 to file, as you'll get an increased amount. Where do I start? First off, you do the math. Let's say you're monthly benefit would be $1700 a month @62 and $2200 a month @66, $500 more a month. Let's take the $1700 a month, and multiply by the FOUR YEARS that you would have to wait. That's $81,600. Now you wait, you're getting the $500 more. It's going to take you 163 months (13 years) to make back that $81,600 that you waited for by getting the additional $500. Which means you would have to wait until you were 79 until it STARTED to make financial sense. Second of all, they are continually changing the "age you have to wait until for the bigger benefit". It used to be 65 years old, now it's 66. By the time my brother files, it will most likely be around 70, I'm personally not counting on Social Security to still be around (at least not paying out benefits, but probably still collecting) when I hit 62.

When you're in your 40's, and 50's, you pay more attention to health concerns. You're on the lookout for more things, and generally tend to not be such a rebel. By the time you hit 60, you're medical costs will most likely double from what you were paying 20 years before. If you're 62 and still willing and able to work, you can probably work pretty hard still. Certainly harder than you can when you hit 70. So why would they "cap" you on your income from 62 to 70 but by the time you're ready to hit the rivers and go fishing @ 70 and not wanting to work anymore, now you can make all the money in the world and not be penalized. WHAT? You mean that not only have I paid into this for all of my adult life, pay taxes on my benefits, and capped on what I can make during the last few years that I actually WANT to work, and to add insult to injury you're going to lift that "cap" once I hit 70???

I know a lot of us who aren't quite there yet in age don't pay much attention to what's going on, myself included. Our Seniors (Moms, Dad's, Uncles, Aunt's, Grandmas, Pa's, etc...) DEPEND on their family members to help keep them tuned in to the current stuff that's going on. WE, as the next generation should not only keep them tuned in, but also tune into what's going on with them. Too often we get wrapped up in our own day to day operations, that we forget these things. As we get older and closer to having to deal with these issues personally, of course we'll pay a little more attention then. But if we can try and help those who have worked their whole life and were productive members of society, then the actions we take now will have a ripple effect lasting to when our kids are our age.

HOPE NOW.......OFFERS LITTLE HOPE AT ALL!!!

2009-07-24T10:01:00.000-07:00

In a recent article it was published that there are 187 companies that are currently being investigated by the FTC, and various state's agencies and AG offices. This investigation has been labeled "Operation Loan Lies". In the article, it was very good to point out that their are legitimate companies that are getting caught in the crossfire between them, and the "bad guys". What these agencies don't understand is that the legitimate companies have EVERY interest in helping you identify, and dispose of the "bad guys". Unfortunately, many of these legitimate companies are running into a spot where it is nearly impossible to actually comply and operate in more than one state. What if you told GM or Ford that they could only sell vehicles in Ohio and Michigan? What if you told Bill Gates that he could only distribute his products to people in California? I'm sorry ladies and gentlemen, but that's just plain UN-AMERICAN. California and Florida have been the highlighted states that need the most assistance, yet they also house more than 90% of the companies that have been labeled "scams" and are currently under investigation. So aside from being un-american, it's been clearly demonstrated that it just doesn't work.

"If I can't/shouldn't use a modification company to help me, who can I use?" This is a common question asked by residents in states that don't allow any assistance for profit. This is actually a question that the majority of people have asked themselves and others when even considering a modification, and hearing all of the bad publicity. The common response from the above mentioned agencies is " Find a HUD Approved Housing Counselor, Contact NACA, Contact Hope Now, Contact Your lender Directly". Unfortunately, regardless of which one you try, you'll eventually end up at option #4. We've showed in previous posts about trying to get assistance through HUD and through NACA. Maxine Waters did a great job showing the frustrations of attempting to contact the lender yourself, and was quoted as saying, " It is impossible for the average homeowner to negotiate their own modification". Recently one of the State AG's said, "he wanted to remind homeowners that there is free assistance out there, and encouraged his states residents to contact Hope Now for assistance. So I did. This is what I got.

You go to Hope Now's website and it gives you a few options. You can scroll through their list of lenders and find your lender and their contact information. You can call for assistance, which gives you your lenders contact information. You can Submit a Request, I did. I filled out all of my information, and got a confirmation email saying: Thank you. If you have not received a response from the mortgage servicer(s) you selected within 5-7 business days after submitting this information, please contact your servicer directly. Alternatively, you may contact a counselor at the Homeowners HOPE Hotline at 888-995-HOPE.
First of all, to paint me with the expectation that my lender is supposed to contact me within 7 business days is unrealistic. So the 7 days goes by with no contact from my lender, so I call them. On their recording it says, " If it has not been 45 days since you've submitted your documents, then there is no need to call, if it has been more than 45 days since you've submitted, please contact the home retention department". So I tried to call them, got "disconnected" three times. I just want to answer a few questions: "Can I confirm that you've received all of my documents? Was my package complete? Can I talk directly to the person that is approving/denying my modification application?" If you try and talk to customer service about it, they tell you that it's with the home retention department and that they don't have ANY information.

Being that contacting my lender myself wasn't working out so well, I explored their other option which was to FIND A LOCAL COUNSELOR. Guess where it put me? It put me right back at the HUD approved counselors. I already tried that, it didn't work, that's why I'm looking to Hope Now for assistance. They referred me back to HUD. HUD, referred me to contact my lender directly. So EVERY agency that I have been referred to by the FTC and the AG's offices, has referred me to a different agency and/or told me to contact my lender directly.

So now we've established who the bad and the ugly are, who's the good? The idea that a modification company shouldn't/can't charge a homeowner until their modification is complete is absurd. ALL companies have some type of costs involved to operate. If I'm a non-profit, I'm still getting money from someone. If I'm trying to make a legitimate yet profitable (I think that's still allowed in this country.....) business, then it has to make sense for both parties. Let's take basic costs for any company: LEASE (monthly, biannual, or annual), Electricity (monthly), Taxes and Unemployment insurance for employees (monthly), Internet Service (monthly), Website Design (one time large charge, monthly service fees), Customer Management System (large one time charge, a ton of planning, and monthly service fees), Phone Service (monthly, HUGE expense especially with a toll free number), Water (monthly), Hourly Wages/and or Salaries (Bi Weekly). Oh, and COFFEE!!!!!
Let's say the average modification takes 30-90 days. What company do you know of that can operate on a 30-90 days accounts receivable? I'd like to know how much that hair that company's account has left......... This is why PMC has been doing progression payments since inception. NO upfront fees, we send you the application first to see if we even have a chance at helping. If we do, we'll send you out all the documents that we need returned BEFORE you pay your application fee. Good business, we work for you, you pay, we work for you, you pay, we work for you, you pay. We don't work for you, you get refunded. This seems to be a more than reasonable process that protects both the company, and the clients.

Many AG offices are asking companies for their comments on what are "reasonable and customary" fees, and for work to be performed before the client has to pay. They are also asking for comments on what is a fair "cancellation fee". Hopefully they realize that if we've dumped 2 months worth of work into a client and they decide that they just don't want their house anymore, the company must have some type of compensation for the work provided. This is why PMC offers the ability to cancel your agreement with us at ANYTIME before the work is completed, and offers you a refund should you decide to cancel. Furthermore, the cancellation fee's are more than reasonable ($250 and $500, depending on where you are in the process). Washington State officials deemed that $1500 was a "reasonable" fee for loan modification services. So the facts that PMC has never charged more than $1500 for our services, offers a cancellation at any time with refund, and doesn't ask you for anything up front should be the clear identifying things that differentiate PMC from the rest.

Cease and Desist......Nobody Wins

2009-07-23T10:40:00.000-07:00

PMC is a homeowner advocate, we believe in good solid companies that do legitimate modifications. Companies that try everything they can to be compliant in the states that they conduct business in, and don't just hide behind loopholes (that will be exposed soon enough). HUD, NACA, the Government and 46 different states have all admitted that their current efforts have been relatively unsuccessful. However, because of the shotgun response by the FTC and many states AG's, most companies are still in question on what are the requirements to be compliant? The problem is that the people who are on the witch hunt, haven't agreed on what is compliant and what is not, so how is anyone else supposed to?

One of the major problems with the shotgun response and not having clear guidelines for compliance are Cease and Desist orders. Let's just say you have a company that has 1000 client files that they are working on, let's say that 50 of those have fell through the cracks in some shape form or fashion (documents weren't returned, weren't complete, phone tag, misunderstandings, and even a few "I dropped the ball"s). If that company is issued a cease and desist order that means they must STOP ANY AND ALL activities. That means that the other 950 clients who were in line to get assistance and the company that was performing well with their other clients are just plain S.O.L. Everything comes to a halt, and whatever clients are hurt in the process ends up still being the responsibility of the business owner.

We are not against cease and desist orders, they are actually quite necessary when you come across a company that is in fact getting a more than reasonable amount of complaints. I would contend however that modifying the terms of that order would be much more of a service to the clients these entities are trying to protect, than their current methods. If the current order was modified to only stop the company from acquiring new clients, but allow them to at least process the files that they already have. Otherwise, you have a large amount of good clients, that paid their fees, and are now not only out that money, but also out the assistance that they paid for. That just doesn't seem right, and it's very clear that it's doing more harm than good to homeowners/clients.

PMC is committed to being a solid source to turn to, to oversee your modification needs. We strictly regulate our agents in various states to ensure that they are doing the job that you paid them to do, and that your best interests are represented. Although other companies are attempting to emulate what we do, when you research who those companies are, you'll find that it's really just a shell for THEIR modification company. If you ever see the words FEDERAL, in the title name of the company and they are not a government agency then do like the Knights of the Round Table did in Monty Pythons Quest For The Holy Grail..........RUN AWAY!!!!!

Promises, Promises, Promises........

2009-07-22T16:17:00.000-07:00

It seems to me that one of the problems that loan modification companies are having is that there staff is making promises that they just can't deliver. The fact that ANY modification company would ever assure their customers that they were going to get a specific rate, or a specific payment is just crazy, and they are flat out lying to their clients. The reality is that it is, and has always been the lenders (investors) decision to modify the terms of a mortgage, and what those modifications are. There are guidelines that have been set forth in the HAMP program, but they are GUIDELINES, not gospel. The program is utilized on a voluntary basis. At PMC, our staff does not makes promises, we make it very clear to our clients that it is in fact the lenders game, but we are very good at playing it. So......buyer beware! People need to know that there are a ton of scams out there, and the FTC is working with individual states to get these companies and bring them to justice. They also need to know that not all modification companies are alike. PMC goes above and beyond the requirements by offering: the ability to cancel your agreement at any time before we've completed, no up front fees, very small application fee and more than reasonable cancellation fees. PMC is constantly working with quality licensed agents in 46 states to make sure that your modification needs are being overseen. Unlike other companies, we stay in contact with you every step of the way, and reserve the right to pull your file from our agent at any time should they not be doing what they are supposed to be doing. It's hard knowing who to trust. Don't think that you're alone, PMC is committed to exposing fraudulent modification companies, and having strict oversight on all of our agents to ensure our success, and our clients. No promises or smoke and mirrors, just good business.

The American Flag

2009-07-20T14:06:00.001-07:00

I'm going to steer away from my normal posts and talk about something else that's very important to me, the Flag. This blog was inspired when I went to the grocery store, big chain store that happens to fly our flag at it's stores. It was early in the morning and they were getting ready to hoist the flag up the pole. As they were connecting to the loops, I noticed the bottom of the flag just sagging on the ground. I politely went over, picked the flag off the ground while they finished hooking it up, and went about my day. It bothered me all weekend. Then I thought about how far we've come with desecrating our own flag over the years. Especially around 4th of July, you'll see "flag everything" boxers, bikinis, etc...... Food for thought, " If we don't respect our own flag as a country, how can we expect other countries to respect it?" Here is some basic Flag etiquette.

§176. Respect for flag. No disrespect should be shown to the flag of the United States of America; the flag should not be dipped to any person or thing. Regimental colors, State flags, and organization or institutional flags are to be dipped as a mark of honor.
(a) The flag should never be displayed with the union down, except as a signal of dire distress in instances of extreme danger to life or property.
(b) The flag should never touch anything beneath it, such as the ground, the floor, water, or merchandise.
(c) The flag should never be carried flat or horizontally, but always aloft and free.
(d) The flag should never be used as wearing apparel, bedding, or drapery. It should never be festooned, drawn back, nor up, in folds, but always allowed to fall free. Bunting of blue, white, and red, always arranged with the blue above, the white in the middle, and the red below, should be used for covering a speaker's desk, draping the front of the platform, and for decoration in general.
(e) The flag should never be fastened, displayed, used, or stored in such a manner as to permit it to be easily torn, soiled, or damaged in any way.
(f) The flag should never be used as a covering for a ceiling.
(g) The flag should never have placed upon it, nor on any part of it, nor attached to it any mark, insignia, letter, word, figure, design, picture, or drawing of any nature.
(h) The flag should never be used as a receptacle for receiving, holding, carrying, or delivering anything.
(i) The flag should never be used for advertising purposes in any manner whatsoever. It should not be embroidered on such articles as cushions or handkerchiefs and the like, printed or otherwise impressed on paper napkins or boxes or anything that is designed for temporary use and discard. Advertising signs should not be fastened to a staff or halyard from which the flag is flown.
(j) No part of the flag should ever be used as a costume or athletic uniform. However, a flag patch may be affixed to the uniform of military personnel, firemen, policemen, and members of patriotic organizations. The flag represents a living country and is itself considered a living thing. Therefore, the lapel flag pin being a replica, should be worn on the left lapel near the heart.
(k) The flag, when it is in such condition that it is no longer a fitting emblem for display, should be destroyed in a dignified way, preferably by burning.

NACA.....Reduced Loan As Low As 2%

2009-07-17T12:30:00.000-07:00

Let's start off by saying that I applaud NACA, and HUD for their efforts in trying to deal with this mortgage crisis. The fact that they have volunteers that are giving their time is fantastic, and my hat is off to each and every one of their employees. However, the reality is that their efforts have been like scenes in Braveheart or 300 where the valiant group assembles to beat the odds, only to get completely slaughtered on the battlefield. Both agencies have openly admitted that they can't handle the volume of requests, nor have they received the expected results from their clients' lenders. Now ethically, if I know in my heart of hearts that I'm just not getting the job done, I'm at least going to point people in the right direction to someone who can.

A perfect example of results from free agencies is a request for assistance that we had received from our website. Really nice gal seemed very well educated, she had a more than verifiable hardship and was kind of the perfect example of what lenders want to see in order to grant a good modification. She contacted NACA and talked with one of the housing counselors. He walked her through how to fill out the paperwork, and she submitted it to her lender. What she got was a 3 month band aid that is a very typical "first response", which was to lower her payments from $3600 to $2600 for 3 months, NOT lower the interest rate, NOR defer the past due payments that had accrued. This "modification" was done in April AFTER Obama's program came out on March 6th. So the lender got paid, yet the client was not in any better shape than she was before. Furthermore, most lenders have the "one shot" clause in their modification, so most clients are not eligible for future assistance. "Who's fault was it that this happened?" If the NACA counselor had any idea of what was available he would have advised her to decline the offer, and renegotiate. If the lenders were really just "giving homeowners the same results they would get without a third party....." as they indicate, then they would have deferred her past due payments (or at least gave her a 10% of past due good faith payment option, and defer the remainder), lowered her interest rate making her payments $2600 a month LONG TERM, not for 3 months. Just as that lender has done with numerous clients of ours.

Aside from not having a good odds at getting a second chance, she also happened to live in a state that PROHIBITS ANY FORECLOSURE RESCUE ASSISTANCE FROM ANY FOR PROFIT COMPANY. I addressed the problems with this in my last post, and this was a perfect example. By making it impossible for legitimate companies with reasonable fees to assist, clearly leaves homeowners with little alternative. When they explore those alternatives, they come up short.

One of the leading complaints about modification companies is that they misrepresent their services (promising low rates and giving customers false expectations). I'm very particular with my staff in explaining realistic expectations. If you go to NACA's home page, the first thing that comes up is the SAVE THE DREAM TOUR, where it advertises that "thousands of their clients have received permanent interest rates reductions that SAME DAY as low as 2%". Now if one of my staff ever told someone that we could get them a 2% fixed rate for the term of their loan they would be FIRED. Fed rate was last posted right at 3%, I don't know of any lenders that are giving fixed rates lower than 4%. On the occasion that a rate reduction is granted below the fed rate, it is on a stair step program where the rate remain for X amount of years, then gradually go up. If you call a lender and ask them how long their modification process is, they will typically tell you 90-120 days. Our goal is to get a cradle to grave modification in 30 days. I have had extreme cases (sale dates) where we could get something done in 2 days, but 10 days is pretty much the bare minimum. If I had the intestinal fortitude to actually advertise that we got thousands of customers same day modifications, and that we can get them long term fixed rates of 2%......the FTC would crucify me. If my staff even insinuated that either of those claims were remotely possible, we would be shut down.

To add insult to injury they also advertise, "NACA has been extremely successful in making dramatic reductions in interest rates saving homeowners hundreds and thousands of dollars a month in their mortgage payments. You would work with your NACA Mortgage Consultant to determine a mortgage payment you can afford based on the above described Affordability Budget" . Same thing.....hundreds of dollars, OK, a thousand dollars or more, OK, THOUSANDS of dollars a month is savings....., I'm calling another Penn and Teller on that. My staff is not allowed to tell people that they are going to save thousands of dollars through us, nor are they allowed to give customers specific rates or payments. We will explain what we have done for others, and what the current "pulse" is, but is ALWAYS ultimately the lenders decision on IF, and how much they will bend. Again, if I advertised on my website that we saved clients thousands of dollars a month I would probably get a few phone calls.

When you go to Google, and type in "NACA", this is the advertisement that shows up: "Providing loans to low and moderate income people and those who are considered to be subprime borrowers. Information on mortgage services and national ..." Now if we look back, you'll remember that NACA was one of the agencies that was advocating the subprime market and helping people get into homes that they knew they could not afford. One could easily argue that their misdirecting advice is part of the reason why we're in this situation in the first place. Now, the Federal Government and other State agencies are directing people back there to fix the problem?

I would challenge my negotiations staff against any "free agency", given the same number of clients, same parameters, basically on the same playing field, they would run circles around them. No disrespect to any of their volunteers/employees, I made that clear at the beginning. It's just like anything else in life, If I'm the quarterback, I'm going to give the ball to the guy that's going to get it across the line and put points on the board, not the one that's pounding his fists on the grass wishing he tried harder.... Who do you want to give your football to?

FTC and US States Crack Down On Loan Modification Scams

2009-07-16T13:40:00.001-07:00

Yesterday was a busy day for many news writers. There were articles in Reuters, Los Angeles Times, and Seattle PI.com about the crack down on loan modification scams. It's about time that the Government directs their attention towards differentiating between legitimate and illegitimate loan modification companies and exposing the differences ( no up-front fees, not asking for deed or interest in your property, reasonable fees, misrepresentation as a lawyer or lawfirm, etc...) as opposed to just putting us all in the same category.
Deb Bortner, a Washington State Department of Financial Institutions spokeswoman was quoted saying, “ there aren't enough HUD counselors to meet the need of the state, and that there were dozens of legitimate loan modification companies that were operating legally”. However, the Assistant Attorney General James Sugarman said that he knew of NO commercial loan modification business in the state that has the required certification from the Department of Financial Institutions. So the AG and the DFI have conflicting understandings of who is operating legally, and who is not. Now if there is a dispute on what the required certifications are within different departments of the state, how can they possibly try to prosecute companies for not completing the required certifications? The state doesn't even know what they are, yet they impose FELONY penalties for violations. The Attorney General Rob McKenna advised consumer facing mortgage pressures to seek a HUD mortgage relief consultant. (Really? Maybe he should try it before he advises his residents to....)
Washington is actually one of three states that has still not changed their legislation, and is putting their residents at further risk because of it. I don't know of any modification company that is taking residents from Illinois, due to their shotgun response. Washington D.C. Prohibits ANY “for profit” business from assisting homeowners at risk. So as a business owner, if my NET costs to do a modification are $800, and I charge the homeowner $800, I am in violation. Even though we can illustrate that we didn't make a profit, we still charged for the service. So if legitimate companies can't help, HUD and other “free” agencies have said numerous times that they are 1)inadequately staffed and 2) inadequately experienced to handle the influx of requests, then what are the residents of these states supposed to do?
The Washington State DFI considers it, “reasonable for loan modification companies to charge $750 for preparing a hardship statement and household budget to present to a lender and another $750 for negotiating better mortgage terms. Higher charges may be reasonable in complex or especially difficult cases.” This was released as of yesterday. PMC is proud of the fact that we have NEVER charged a client more than $1500 for our services. Furthermore, any affiliate that we've used has never asked for more than $2000, and this is in EXTREME cases. We are also pleased with our progression payment system, which allows clients to get immediate assistance without having to pay everything at once. This has been very valuable in helping homeowners that are really in a financial bind. It also shows our commitment to all homeowners regardless of income level, in an effort to help out our fellow Americans.
So this morning, Bloomberg came out with a tally of 1.5 Million Foreclosure fillings in the six months through June. Home prices dropped an average of 18.1% from last year in 20 major metropolitan areas, making it next to impossible for almost anyone to refinance. In addition, the unemployment rate rose to 9.5%. The Mortgage Bankers Association said, “Defaults by suprime borrowers with poor credit histories spurred the housing recession, and spread to prime borrowers as home prices and sales declined. Prime fixed rate home loans to creditworthy borrowers accounted for 29% of new foreclosures in the first quarter. One in Eight Americans is now late on a payment or already in foreclosure.” This is a clear illustration that it's not just subprime borrowers that are having problems, this problem is affecting EVERYONE. More than 8.3 Million mortgage holders owe more than their homes are worth, if we have even another 5% decline, it will add another 2.2 to that figure. That would mean over 10.5 Million homeowners that would be in a “negative equity” situation.
Anyone ever watched Penn and Teller's show on Showtime? Well I'm calling that on JP Morgan Chase. They were recently quoted as saying that they have 155,000 applications in for modifications (it's much higher than that), that they have modified 138,000 of those applications. If this was the case, then why were they recently scrutinized for the exact opposite? Wells Fargo declined to comment. Bankruptcy Attorneys are particularly critical of the banks efforts saying that , “they are largely a farce”.
Here's a few questions that are food for thought: Where were the FTC and all of these Attorney Generals when these “predatory” loans were being written in the first place? Where are the lawsuits being filed against these lenders for not only their deceptive practices to get the loans originated, but for their very well documented antics at “dodging” homeowners that are looking for assistance? Who is writing the legislation and “rules” for legitimate loan modification companies? What are their qualifications and experience with the current mortgage crisis? Do residents in certain states have the right to file a suit against their State for preventing them from pursuing/getting assistance with their mortgage situation, when the those states have not given them any other viable alternative? Would it be in the FTC and the Nations best interests to contact 20 or so of the legitimate loan modification companies and ask them for their input on regulation of the industry? What do you think?

Divorce, Your Mortgage and Attorneys, Oh My!!!

2009-07-15T13:54:00.000-07:00

"Divorce, Your Mortgage, and Attorney's, Oh My". Just like in the Wizard of Oz, Attorney's are good at just saying, "follow the yellow brick road". When it comes to divorce, that yellow brick road can be a very costly one.

What most couples fail to realize is this: If you treat your relationship and finances like a business, then consider your combined incomes as a pie chart that you're drawing on the board. Whether both are working or just one, the income is one big pie that you are both eating off of. The second you involve an attorney, you now have one if not two(if both parties get attorneys) other people that are eating off of YOUR pie. Furthermore, those people eating from that pie are not contributing to that pie, nor do they have to live with the long term effects. They get their money, and go on to the next client. The two of you still have to deal with the situation. Being honest with themselves, I don't think anyone can really say they've gotten a "better deal" because they had their attorney's involved. If one person gets an attorney, than the other is likely to defend themselves with one as well.

Attorney's typically charge per court hour, in addition to whatever you have to pay in retainer fees. For anyone that has been an hourly wage employee or has employed them, you know that they depend on those hours to make their paychecks. So if an employee has a clear vested interest in getting as many hours as possible, why would you think your attorney would be any different? To the contrary, it's in their best interests to draw things out as long as possible, thus warranting additional fees. I guarantee that if Attorneys were only paid on a per case basis, and not allowed additional compensation per hour, that our entire legal system would magically move that much faster. A legitimate loan modification company will not only have no up front fees, but will also get paid on a per file basis. That company would then have a huge interest in getting you resolution as soon as humanly possible. Some companies set clients on a weekly, or monthly payment that is to continue "until complete". Well if you're paying $200 a week indefinitely, it and it takes 4 months to get a modification, then you've just paid out $3200. If it's $1K a month, then you would have paid out $4K. If a company has it "open" to either make $1600 from you or $3200 from you, what do you think they will do?

Divorce is obviously a highly emotional process that is very "draining" for both parties. You not only have the actual divorce, but everything that is involved (who gets what, who pays who, who gets the kids, who pays for the kids, etc...). There are many couples that are getting divorced or separated that are homeowners. Many of the mortgages that were written previously had more holes in them than Swiss cheese. Some, there is only one person on the loan documents, but two people on the deed. In some cases, the property has been quick claimed and the person on the loan isn't even on the deed.

Unfortunately, dealing with the mortgage situation isn't any easier than the other aspects of the divorce. If you are not on speaking terms, and you're having financial problems with the mortgage on top of it, continuing to not talk about it and solve the problem isn't going to help anything. The problem will NOT just fix itself. For instance, if the husband has left the property, the wife resides in the home, she's on the deed, but not on the loan. She has financial problems trying to keep up with everything and is looking to get a modification, he's mad at the world because they're getting divorced and says that he won't sign off on it. I believe the term is "cutting your nose off to spite your face". As mad as he may be, it's going to cost him in the long run to not cooperate. His attorney will of course advise him to not cooperate, as it takes fuel away from the fire that they are building. But if he doesn't cooperate what will happen is this: she'll continue to not be able to make the payments, the house will go into foreclosure. She finds another place to live, and continues on with the rest of her life. He on the other hand was the responsible party on the mortgage note. So aside from his credit being destroyed for the next 10 years because of a foreclosure, the lender will eventually sell the property (auction usually at substantially less than the value, and less than what the homeowner owes on it). Unlike a few hundred dollar credit card where the company just charges it off and moves on, the lender will most likely pursue action and judgement against the homeowner for the remaining balance (difference from what they sold it for, vs. what the homeowner owed). These funds can be recouped through garnished wages, and possibly state tax returns depending on the state. For me, that sounds like a lot of headache.

Question: "How many attorney's that "specialize" in loan modifications have you heard of before last year?" Second question: " How many attorney's that "specialize" in loan modifications have you heard of now?" Easiest way is to cross reference last years yellow pages with today's Internet searches and see what you find. What I can assure you is this: 98% of companies that claim to be attorney based actually only have one if any attorney's on-site. 98% of attorney's that claim to specialize in loan modifications have little to no experience in actually doing loan modifications. Even Real Estate attorney's are in foreign territory. Their day to day operations do not consist of talking to lenders, reviewing financial statements and hardship letters. To be frank, most of them would have a hard time trying to negotiate their own mortgages, much less yours. "Then why have Attorney Based companies come into existence?" Many of the states in the country have specific rules for loan modification companies, many are very stringent. The common "loophole" to these rules is that Attorney's are "exempt" from the requirements. Now the fact that these "loan modification attorneys" are not bound to the same rules that other loan modification companies are does not give me any kind of comfort. If an attorney is exempt from the requirements of what a loan modification company has to conform to, then who IS regulating the attorney base company? Furthermore, if the attorney based company isn't bound to the same legislation, then does that mean that they can do whatever they want to me without any recourse? YES, they can charge whatever fees they want, they can ask for upfront fees, they can ask you for interest in your property, and they don't have to DO anything for you to substantiate their retainer fee.

The common complaints with loan modification companies are usually that the company charged a large upfront fee, and/or asked for interest in the homeowners property, and/or didn't really do anything for the customer, nor has the customer gotten any type of correspondence from their lender. ALL of these complaints are valid ones, and the consumers have every right to complain about them. Question: If a loan modification company is bound to certain rules and regulations set forth not only by the FTC, but also by the individual states and violations of those rules result in hefty penalties if not a closure of the business, but an "attorney" or "attorney network" who is not regulated, and can legally get away with the actions mentioned above, who do YOU want to put your trust in?"

In conclusion, my personal experience with attorneys has not been pleasurable. It's cost me substantially more than it was supposed to, and I've always looked back wishing I had done something differently. If you pay $4K out to an "attorney based" company, and they don't do anything for you but give you smoke and mirrors, you can complain all you want, but you're still out that $4K. If you have $100K in total assets and you're going through a divorce, regardless of what your split would have been 90/10, 80/20, 60/40, 50/50, etc..., your split will be decreased by whatever you have to pay out in attorneys fees. IE: If you were shooting for a 50/50 split, and going with an attorney you get 60/40 in your favor, you're comparing getting 50% of the full $100K vs. getting 60% of about $70K. You're actually costing yourself $8K, even though you're thinking you got one up because you were getting 60% instead of 50%. ($50K vs $42K). If you think that paying out 30% of your assets between both of your attorneys is unrealistic, think again. Better yet, ask someone who has gone through it........Can I Get A Witness???

Foreclosure Proceedings On Neverland Ranch, Michael Jacksons Home

2009-07-14T13:21:00.000-07:00

There I am, with my cowboy hat on, my vest, and my vertical coat hanger that was used as my microphone singing “Who's Loving You” emulating Michael Jackson singing with the Jackson 5. I still remember when they had their own cartoon. Despite being recognized as the King of Pop, and one of my all time favorite artists, Michael Jackson had quite a few financial problems. I'm sure he had issues here and there with finances, they became public around 1993 when he was first accused of molestation at Neverland Ranch. This accusation cost him millions in payouts, and in lost revenue due to the incident. There was an estimated mortgage of $23 Million for the ranch, and in 2007 everything caught up to him and he went into foreclosure. On the eve of the the foreclosure auction (sale date), an investment company stepped in and purchased the loan, essentially taking the estate off his hands.

So you have two questions that come to light here: 1) Are celebrities eligible for home loan modifications? 2) What are the investors going to do with these multi-million dollar properties that have clearly depreciated, should a celebrity go into foreclosure? Let's say we have a median home price of $300K, and the average celebrity home is around $5 Million. A lender would have to modify over 16 $300K mortgages to equal out one 5 million dollar home. Simple math would tell me that a celebrities home makes far more sense for an investor/lender to modify the terms of the mortgage.

The answer to question #1 is YES. Depending on the income level, you may not qualify for Government assistance, but it can still make financial sense for the investor/lender to modify the terms. The general public has the misconception about people who make good money. Anyone who has made good money will tell you, “When you make good money, you spend good money”. I don't think I know of too many people who haven't had a reduction in income over the past two years, celebrities are no exception. For musicians you have MP3 downloads that have drastically limited the money they make on their record sales. Most of them have to depend on touring to actually make everything make sense financially. Although movie watching is one of the few activities that hasn't dwindled recently, the funds available to make them and the payouts on them have somewhat dwindled. When the economy is in a tight spot, it generally puts everyone involved in a tight spot as well.

The second question has yet to be answered. Bottom line is that if i'm an investor, I have $5 Million in one account, and $300K in another account, of course i'm going to pay pretty close attention to what that $5 Million account is doing. Furthermore, should I have an issue on that account, I have a HUGE vested interest in trying to get it rectified in a very expedient manner. Obviously what makes sense, is not always what the banks choose to do. But EVERYONE is trying to limit their losses at this point, they have to address the issue at some point.

So why wouldn't more celebrities put in for a modification? If Michael Jackson had put in for a modification of his mortgage, he may still be here. I don't think anyone can dispute the connection between your stress level, and how it affects your health. Nor will anyone dispute that if you're having financial difficulties, that this adds to your stress level. Michael Jackson would have had a pretty good case in getting something done. He still has/had royalties coming in, so he had some sort of income. He clearly had a reduction in income over the past few years. He tried to do everything he could do to rectify his situation (sold/auctioned things that were not “essential”). With a $10 Million mortgage, even a one point reduction in rate would save you around $6K a month. With a $23 Million mortgage, it probably would have been closer to $13K a month. I don't care how much you make, who couldn't use an extra $6-$13K a month?

The majority of celebrities don't ask for assistance because they are embarrassed. On one hand, they definitely need the help. On the other, they feel it's “unbecoming” of a celebrity to ask for help. Lastly, discretion is very important to celebs. If they do need help, they certainly don't want everyone/anyone knowing about it. I'm sure tabloids would have a field day over it. We have established that YES, there are in fact celebrities who need assistance and could benefit from a loan modification. We have established that they can in fact get assistance, under the right circumstances. That only leaves the question of discretion, and at PMC we value ALL of our clients privacy and personal information. Not only do we not sell, barter, or spam your information, but we also have internal company policies which prohibit anyone from dealing with your file than the people that were assigned to it.

Typically, celebrities and VIP's are used to getting top notch treatment, and only dealing with the best in every aspect of their lives. Choosing a company for something as important as your home should be no different. So whether you are a big name celebrity, or working on it, there is someone out there that you can trust.

Government Asks Banks To Expand Foreclosure Prevention

2009-07-10T14:46:00.000-07:00

On Friday Reuters put out an article saying that Government is asking the 25 largest mortgage servicers to step up their efforts in doing modifications. This program is expected to save as many as four million borrowers from foreclosure. Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan wrote a letter to these lenders saying,
"There is a general need for servicers to devote substantially more resources to this program for it to succeed and achieve the objectives we all share,"

So the Government recognizes that the lenders are currently inadequately staffed to handle the current influx of applications. The letter also asks mortgage servicers to expand their reporting of modification work, create stronger measurements for how they deliver help and cooperate with a fail-safe program that will make sure that eligible borrowers are not wrongly denied assistance. Thus recognizing as well that lenders have been and are currently wrongly denying applications. My question is this, “ Why does the Government continue to trust these banks to do the right thing?” We've already handed out $700 Billion in taxpayer money ($350 Billion already received) in order to save these banks. ALL of them were scrutinized for CEO spending and payouts, and NONE of them had an answer to 4 simple questions, “ How much money have you spent, how much money have you lent, how much do you still have, what are your plans for the remaining funds?” The response was the same from all of them, “ At this time we are not doing money in, money out tracking. We've spent some of it, we've lent some of it, we still have some of it.....” If you loaned me $2000 because I said I needed help, and you saw me next week driving a new car, you'd probably have something to say to me right?

JP Morgan Chase claims to have approved 87,100 borrowers for lower monthly payments. Notice there is no explanation of how they got borrowers to a lower payment. Most of them were offered forbearance agreements with 6 mos to 12 mos balloon payments. Which means the borrowers payment will be reduced for a 6 to 12 mos period at which the end of the period, they are due for a balloon payment, typically the amount that wasn't paid during this time. So you save a few hundred dollars a month only to have to pay it all back after a year. Now if you had a hard time trying to make your payments in the first place, how are you supposed to come up with thousands of dollars. The second thing they are not addressing is how many applications they have right now, compared to how many they've “approved”. I did a little research on them, and found quite a few complaints from customers.

Bank of America is making similar claims that they get over 80,000 phone calls A DAY from consumers looking for assistance with their mortgage. They claim to have 7,400 representatives to field these calls. So assuming that you put 100 people in a call center, they are saying that they would have 74 of them? I guess I missed the news release of Bank of America suddenly hiring more employees, and building 74 new locations since last year.....I did some research on Bank of America and their practices regarding mortgages. One of the first things that came up was on consumeraffairs.com. There is a cornucopia of complaints from their customers, yet they were one of the major recipients of recent government bailouts. Now, Bank of America has bought out Countrywide, and are trying to make the transition. This presents two problems. 1) What happens to all of the Countrywide people that put in for modifications, and now have to resubmit for Bank of America? 2) If we've already illustrated they they are not adequately staffed to handle their existing applications, how are they supposed to efficiently take on Countrywides' as well.

Citigroup (Citi, Citi Finance, Citi Mortgage) is also a big one. Aside from the laundry list of consumer complaints on-line, we have quite a few of our own clients that have some pretty bad horror stories. In order, the largest mortgage lenders were Wells Fargo, JP Morgan Chase, Bank of America, Countrywide, and Citigroup. With the acquisition of Countrywide, Bank of American now emerges as the largest. With three of the 10 biggest mortgage lenders taken over in 2007, it leaves fewer players vying for a smaller pie.

There was a replicated article in WSJ, it added that “housing counselors complain many borrowers are waiting for help as mortgage-servicing companies get up to speed”. Bruce Dorpalen, The National Director of Housing Counseling for Acorn Housing Corp. said, “We are not getting anywhere near the level of resolutions we expected...” (I thought ACORN was Association for Community Organizations for Reform Now, not a Housing Corporation???) He's admitting that they just plain aren't getting the job done right now. The Executive Director of Housing and Economic Rights Advocates in Oakland, CA Maeve Elise Brown was quoted saying “Homeowners on their own are not able to navigate the system”. She also said, “Often, housing counselors must educate their staff about their own program”. So who is doing the negotiations? Staff that doesn't have the experience, and need to be trained first? So what happens when you're file is assigned to “the new guy/gal”? Are you really expected to put all of your trust and hope in their hands?

We've concluded that the Government recognizes the current problem. They also recognize that previous efforts have thus far been unsuccessful. It seems like the Government is trying to recover from their initial knee-jerk response to modification companies labeling them all together, and realizing that there is a need for such companies. The task at hand is to distinguish which companies are the good guys, and which ones are the bad guys.
We've established that leaving it up to the banks to do what's right is probably not in the cards. I believe the saying is, “ the definition of insanity is attempting the same thing over and over expecting a different result”. How much more of our taxpayer money are we going to risk doing this? My kids are already going to have to pay on that money, I don't want my grandchildren to have to pay as well. Both the Government and other agencies (HUD, ACORN, HERA, etc...) agree that it's next to impossible to do get a modification on your own, and furthermore concede that they're not doing to well either.

It seems more and more apparent that doing a loan modification through a reputable company is the most efficient, and effective way to get it done. If you notice, the majority of the complaints regarding the above mentioned lenders are from consumers who attempted to do their own loan modification. They got stonewalled, frustrated, and finally complained. Does anyone else see a pattern here?

My Lender Said They Are Going To Help Me.....I'm Saved!!!!

2009-07-10T08:07:00.000-07:00

On a semi regular basis, we talk with prospective clients that say that they're just going to work with their lender. Usually it goes like this, the client puts in a request for assistance, we contact them and tell them what their options are. Like me, if they can do something themselves and not have to pay for it, they are going to explore that option.
So after dodging numerous phone calls from the lender, they call back and threaten that they are considering using a third party for assistance. The phone call gets passed to a supervisor, and they explain that they would now like to assist you. They go through the motions, and set you up to have their hardship package sent out. At this point, they are betting on a few things and usually win: 1) you will get the information, and not even fill it out. 2) you will fill out the information un-assisted, and they can record (document) what you submit to them, 3)the information that you submit to them will either be incomplete or not within their parameters. Now they've got you up against the ropes, you're eating out of their hand and basically willing to give them anything they ask for. They then explain to you that it takes about 90-120 days to complete the process, and advise you that if you can make a payment during this time, to do so. So you either A) don't make a payment during this time B) make your payments. Either way, you're now three months later in the process and one of two things will happen.
1)They approve your application, and give you a low-ball offer (keep in mind that this is the multi-million dollar corporation whose job is to make as much money as possible, not give it away. They have no reason to have your best interests in mind).

Example: You are four months behind on your $2K a month mortgage, so you're $8K behind on payments plus fees, and you have a 7.5% ARM. They say OK, you come up with $4K of it, and we'll defer the other $4K and you should be good to go....Problem is, that once they do the deferral, you're still right back at square one with a rate and payment higher than they should be, and an adjustable clause. Because you want to keep your home and don't feel you have any other options, you sign on the dotted line. The lender gets paid in full from the government, and you're really not any better off than you were before.
2)They just deny your application for one reason or another, and now you're further behind than you were the first time. Furthermore, the lender now has your DENIED application on record, so should you now decide to try and use a legitimate modification company, they are going to have a really hard time trying to get the tables turned around as the cat is now out of the bag. Mortgage companies have made it very clear to the public that they basically have ONE SHOT at getting this done. They are just not logistically set up to “re-hash” your file, nor is it their responsibility to “walk you through it” and make sure that you qualify. Their job is to act in the best interests of their investors and board of directors, not yours.
So why do people still try to do it themselves? Usually it's the fear of getting scammed. Every time you turn around you hear of some new loan modification company that is a scam. There are quite a few of them out there, we give quite a bit of information about them on our website.
“OK, so I clearly can't trust my lender to just magically help me out, and I don't want to be scammed out of my last hard earned dollar, what do I do then? You need to do diligent research on whatever modification company you're considering. Find out what they're success rate is, find out what they're employees experience is? Were they flipping burgers last week and they're now loan modification specialists? Do they have a guarantee, do they offer no up front fees? Are they charging me $3-$4 thousand dollars, or is their fee pretty reasonable. Whether I'm buying a TV or looking for a loan modification company, I'm going to due some research. I want to make sure I'm dealing with a solid company that will not only sell me the TV, but offer service if I have a problem AFTER I've bought it. I also want to make sure I'm getting the most bang for the buck. It comes down to your gut feeling. Do you have a good feeling about this company or not?

Refinancing......What Happened?

2009-07-09T08:37:00.000-07:00

If a lot of you are like me, you did a refinance on your property a few years ago with the understanding that you would refinance after 2 or 3 years. This was the typical sales pitch used by mortgage brokers to get people into 2, 3 and 5 year ARM's. If you started your cycle in 2000, then you probably would have refinanced in 2003, and again in 2006 as property values were still good, and the banks were handing out money like it was going out of style. The requirements were so loose as far as loan to value ratios (LTV), and such that it was hard not to. Aside from the fact that if you didn't, your rate was going to sky rocket along with your payments. Of course each time you refinance, you have closing costs. Mine averaged around $5K each time, in addition to whatever equity I was pulling out of the house. Like many, I put the money I pulled out of the house right back into the house via remodeling and repairs. Hindsight, maybe I should have just stacked that money in the bank and end up letting the house go back..... However, because I put it back into the house under the pretense that anything I did to the house would increase it's value. So if I owed $100K on the property, it was valued at $180K, and I took an 80/20 I would end up cashing out about $39K after paying closing costs. So now you're into your property $144K, you put all $39K into remodel and repairs. Now, the carpet is yanked out from under us, the property is now valued at $150K AFTER the additions, the most the bank will loan at an 80/20 is $120K. Without $24K to put down, I'm then stuck in this high interest ARM and no way to get out of it. At this point a loan modification is about my only possible option.

My in-laws are in a completely different situation. They have a property that's valued at 800K, they only owe about $500K on it. During the mortgage boom lenders often do what's called “stated income”. So if your credit score was high enough, they would allow you to put down whatever you wanted as far as income. In their case, they own both a restaurant and a construction business. Both businesses have seen about a 30-40% decrease. Of course you base your obligations of what you are making at that time, and when what you're making changes, it's going to put you in a bind. Stated Income is definitely a thing of the past, it's just unheard of anymore. So now they have the equity, they still have an income so they can make some type of payments, just not as big of ones as they were making previously. Refinancing is then out of the question. A loan modification is the only alternative that doesn't entail them losing their home.

I have a best friend that's a carpenter. My age, 3 year old son and 2 dogs. He's probably one of the better framers that I have come across, and his boss has been pretty good given the circumstances at finding them work. However, he had about a two month period where he had no income, and the $200 a week in unemployment was peanuts compared to what their bills were. So they couldn't make the mortgage payments for about two months. It's summer time now, his work is picking up, his wife is now working part time as well to help ends meet. Like most folks, they live paycheck to paycheck. So now they are close to making what they were making before, and they can make the payments again. So PTI is in line, DTI is in line, LTV are in line, but they now have a blemish on their credit report. Regardless of the circumstances, if a bank sees that you had trouble trying to pay another bank, they're not going to be enthusiastic about being the next bank that you DON'T pay. If refinancing is still credit score driven, then they are up a creek without a paddle. Even if they come up with the past due payments, it will still show on their report that they were late. Their score will most likely be affected for at least the next 6 mos to a year. What are their options? Do they rob Peter to pay Paul and try to come up with the past due payments? Do they just wait it out and hope that the lender comes through with a good deal? Or do they take control over their own destiny, and get the assistance they need?

HUD Approved Loan Modification Agencies

2009-07-07T15:48:00.000-07:00

I have a family friend of mine that happens to live in a state where we do not conduct business. He called me Sunday after I got home from church and explained to me what was going on. I told him that PMC couldn't help him because of the state he lives in, but I would be more than happy to try and do some research for him. First thing I did was go to Google and typed in “HUD Approved Loan Modification”. I figured I should have no problem getting him with someone that could work in his state and wouldn't charge him anything. The first three spots (depending on what time of day it was) were loan modification companies that had ZERO affiliation with HUD. The next few were various links to HUD's website. I clicked on the one that said “ Foreclosure Avoidance Counseling” as it said something about HUD approved housing counseling agencies. It then displayed a map of the US with a link on each state. I clicked on this state, and the first two options were the Housing and Finance Association. The first thing that caught my eye was the advertisement for a loan modification company, and another advertisement for a refinance company titled “Looking For a Home Loan?” No, I am looking for assistance with my current home loan. So I went to the “Home Loans” section, it gave me a drop down for “Looking for a Loan?”, “Already Have a Loan?”. I clicked on already have a loan, and it gave me another drop down menu. One of the options was “Borrower Counseling, How to Save Your Home”. This is what it said:
Borrower Counseling:How to Save Your Home
Help for Homeowners Facing the Loss of Their Home (This was a link to BACK to HUD) (a collaborative effort between HUD/FHA, the Department of Veterans' Affairs, Department of Labor, Fannie Mae, Freddie Mac, and members of the mortgage industry)
Q: What Happens When I Miss My Mortgage Payments? Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens,
you not only lose your home, you also would owe HUD an additional amount. Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in
the future. So you should avoid foreclosure if possible.
Q: What Should I Do?
DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making
your payments, call or write to your lender's Loss Mitigation Department without delay. Explain
your situation. Be prepared to provide them with financial information, such as your monthly
income and expenses. Without this information, they may not be able to help.
Stay in your home for now. You may not qualify for assistance if you abandon your property.
Contact a HUD-approved housing counseling agency. (This is where I started???)Call (800) 569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They frequently have information on services and programs offered by Government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually
free of charge.
Q: What Are My Alternatives? You may be considered for the following: Special Forbearance. Your lender may be able to arrange a repayment plan (higher payments)based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses.(This is incorrect. If you have an increase in living expenses, you will not qualify. You submit a hardship letter they way they are suggesting saying that your living expenses have gone up, not only will you be denied, but it will be on record). You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.
Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.
You may qualify if:
1)our loan is at least 4 months delinquent but no more than 12 months delinquent;
2)you are able to begin making full mortgage payments.
When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property. (This means that you are giving the Government partial claim to your property??? Isn't this specifically what they've been warning consumers about? A legitimate loan modification company would never ask you to do this, but the Government is AND advocating it!)

Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.
You may qualify if:
1) the loan is at least 2 months delinquent;
2) you are able to sell your house within 3 to 5 months; and
3) a new appraisal (that your lender will obtain) shows that the value of your home meets HUD
program guidelines.

Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily "give back" your property
to the lender. This won't save your house, but it is not as damaging to your credit rating as a
foreclosure.
You can qualify if:
1)you are in default and don't qualify for any of the other options;
2)your attempts at selling the house before foreclosure were unsuccessful; and
3)you don't have another FHA mortgage in default.

So.....In a nutshell, it told me to make my payments, call my lender, and gave me a laundry list of things that “I may be considered for”. It was basically a big circle bringing me right back to my starting point. I called my friend back and explained that I was hitting a brick wall. He then said, “You know...when my lender calls me to collect money, they are pretty ruthless about it. I'm a plumber, not a negotiator, so what am I supposed to do?” The problem is that in his state they have written current legislation to only allow Mortgage companies (the ones who put us in this situation in the first place....) to do modifications. Furthermore, it's under FELONY penalty if you do, and are not a Broker. I like my friend and all, but we're not going down that road. “You're saying that I have to contact the same SOB that made a few grand on me last time, and didn't explain this ARM to me”. Since this, I have researched numerous companies in his state to see who was out there. After a few days of looking, I narrowed it down to two companies. I talked with both of them, and the company that was closest to our business practices and ethics was the one we chose to be our affiliate for that state. Although we're thankful for this company that can do the job, I must say that i'm disappointed in our government agencies. They are supposed to be here to help consumers, not make it harder for them. They have gone out of their way to tell Americans that there is help and that it's free, yet you try to pursue it and it's a wild goose chase. “Lead, Follow, Or Get Out Of The Way”. They certainly aren't leading, if they don't want to follow that's fine, but they at least need to get out of the way and let us (PMC)help our fellow Americans.

No Up Front Fee Loan Mods, The Truth

2009-07-07T10:55:00.000-07:00

"NO UP FRONT COSTS, FREE CONSULTATION". These are the terms that we're seeing more and more everyday. Unfortunately, when you call most of these companies the only thing free is the phone call. Most will give an explanation of their proprietary information and how their information is different, thus warranting charging up to $3000 for this information. So you pay your money and you get their proprietary information and you start the process. The reality is that most companies "packages" are the same, with different letter head and fonts. It's actually the same information that you can usually download from your lenders website for free. The big question then is "Who Really Does Mods with No Upfront Fees?" A company that is willing to send you their package first before you pay is the best answer. No restrictions, just the information you need to make an informed decision. It comes down to trust. If the company you're considering isn't willing to trust you to follow through with the process, then why should you trust them with something as important as your home? At PMC we are very confident that our services are worth every penny. This is why we not only send you our information first, but we've instituted our DIY packages for $99 that not only include that same information, but also the lenders information and additional insight on the process. Most people don't have the time/energy/knowledge to get everything that's on the table, that's why they use PMC. Some do have those three things and find our DIY package exactly what they needed to get the edge they needed. Furthermore, PMC does progression payments so that you can make your fees manageable. Bottom line...If you're looking for a free pamphlet, nice people and no real answers, call NACA, HUD, or ACORN. If you have a lot of extra money that you'd like to spend then call one of the "Law Groups or Attorney Networks". If you want your information sold to companies unknown to you, go to Google or Yahoo, type in "Loan Modification" and click the first ones that come up. If you're looking for a real company that does what they say, and provides a valid service at an affordable price, contact PMC.