I may catch a lot of heat for this blog, because after all, the Obama Administration has been taking a proactive approach to the foreclosure crisis, and I don’t hesitate to give credit where credit is due.

But facts are facts, and the fact is the government has acted in cahoots with the lending industry to put the interests of the banks ahead of the interests of homeowners. They have cynically crafted an overly simplistic message which implies that governmental action has made obtaining a loan modification easier than getting an oil change!

Here are the talking points:

• The “Making Home Affordable” program will help the vast majority of distressed homeowners
• Free help from the government and lending institutions is easy to get and always better and more beneficial than hiring a professional to help negotiate a loan modification

But, the evidence simply contradicts the position of the government and the lending institutions. Foreclosures are not abating, and the problem is actually getting worse. Here are some of the facts:

• According to a report from the Federal Housing Finance Agency (FHFA), completed foreclosure sales increased 900% between March and April this year.
• According to RealtyTrac, a company that compiles foreclosure data, 342,000 households received at least one foreclosure-related notice last month. This is an increase of 32 percent compared with notices issued last April and is the second consecutive month in which more than 300,000 households got a foreclosure filing.
• According to the Wall Street Journal on April 15th, 2009, one the nation’s largest mortgage servicers, GMAC, acknowledged that only 10% of their customers facing foreclosure qualify for Obama’s “Making Home Affordable” program.

First hand, I’ve spoken to distressed homeowners who believed the hype, did what they thought was the right thing, and relied on free help from HUD counselors and/or Acorn to help them save their homes foreclosure. What was their reward for believing the government? They lost their homes!

The reason I created a free loan modification program is due in large part to much of this misinformation that has been spread by the government and the banking industry–not to mention the countless fraudulent loan modification companies.

I believe that homeowners armed with knowledge about the intricacies of loan modification will be in a much stronger position to negotiate a loan modification that favors their interests over that of their lender.

Further, I do recognize and acknowledge that there is a place for paid loan modification programs. For many—if not most—distressed homeowners, I believe our free program can help them achieve a viable loan modification.

However, every homeowner’s personal circumstances are unique, and some homeowners may benefit from the assistance of a paid professional. A good attorney specializing in loan modification may be able to help a homeowner negotiate better terms than they can on their own.

That being said, homeowners should be very cautious if they decide to hire a loan modification company or law firm, as many of these firms are inexperienced or worse, unethical. Homeowners should always check references and find companies with a track record of success.

Whatever a homeowner’s circumstances are, the place to start is with our free loan modification program. In this comprehensive program, homeowners will not only learn more about the “Making Home Affordable” program, but they will learn valuable tips and strategies on how to negotiate a loan modification.

Likewise, should they still decide to hire a loan modification company, they will be in a stronger position to be able to identify a credible, ethical company, and protect themselves from the many unscrupulous loan modification companies out there trying to scam vulnerable homeowners.

Homeowners can register for the program at http://loanmodificationforfree.com/getstarted.php.

View the modification_program_guidelines PDF