Modificatio attorney offer - legit?

[Radiance]

I received a phone call from Housing Assistance Law Center, P.A.
website halawcenter dot com
They claim they can take my loan payment down from 1550 to 898 at least.
They claim to do this by getting beneficial, my lender, to reduce principal to current home value of 200k and the interest rate to 4.0 fixed for the duration of the loan.
They claim my income doesn't have any impact (my housing is only 26% of my net income).
They claim they are using government funds, in my case to cover the 60k under water.

They charge $2500 up front and additional 1000 at the end of the process that is 45-90 days.

Too good to be true? Scam?
What can I do to check them out?
BBB doesn't say much
Looked them up and there are testimonials against them and in their favor.

Are their offers even possible?

[paladin]

I don't know anything about them, however I would be very careful when getting cold calls such as these. Why in the world would your lender lower your principal? They probably wouldn't, but by then this company would have your $2500 up front fee.

If something sounds too good to be true, it probably is.

[tmvijai]

Too good to be true for sure...

I have seen few ads as well on the road side (Houston). It is surely a scam. DOn't fall for it. I work for a mortgage servicer and many servicers offer Mortgage modification themselves. Some of them signed with GOvernment modification plan using stimulus money which is good but really need lot of ducments to get qualified for it..

If it comes from your mortgager, go for it. Not from an outsider.. THats my 2 cents.

[Radiance]

Thanks,

I am trying with my local hud approved servicer cccs. They are a little swamped so they are a little slow in responses, which I read is normal.

I contacted a similar servicer called editmyloan, they offer money back warranty
it is $500 upfront and $1000 at the end of the mod
If they are not sucessful to modify your loan, they refund your $500.
I would need for them to define what is "sucessful to modify your loan" of course.

Basically, paying is a convenience so someone work on your behalf. Kind of a sophisticated errand boy service.

I am still trying to get with my hud agency, because that is what my mortgage lender wants me to do (beneficial) they give me the hud number everytime I call them....They do not do loan modifications themselves. They only have a temporary hardship department that approves relief for 6 months at a time...

CCCS, in turn is asking me to negotiate with the lender myself, but they would do conference call if I want to.

I managed to pay this month, so I have 30 more days to decide on strategy.
My main obstacle is that I need a very good financial statement, because my morgage payment is currently 'only' 26% of my income. In theory I should be ok, but I got separated, child support is $150/mo and both my parents became disabled and I am their only support (only child). I also have a beautiful baby boy.

So, I am tempted to buy one of those DIY guides to loan modification so I can be better prepared, they all include samples and templates and instructions $30-$90. What do you think?