Is this a trick or legitimate? Option One and Direct Lender

[mindfreak]

We received a letter last week informing us that we may be eligible for a loan modification in the form of fixing our interest rate before it adjusts, or, possibly lowering the rate. Our loan is with Option One, and the letter had Option One written at the top (although it didn't look like letterhead). The letter stated we needed to respond by March 7, 2008. I thought the letter was from Option One.

I called the contact number on Monday 2/25 and spoke with Robert, "senior mortgage advisor" who verified the terms of the loan and that we may be eligible for a rate freeze. He e-mailed me the loan modification application immediately after we spoke. I thought I was speaking with Option One's loss mitigation department, but when I saw the loan mod packet, I realized it was a (removed to protect members) advisor who I was speaking with. (At no time did he tell me he worked for Option One or deliberately mislead me.)

My husband and I were planning to complete the loan mod packet this weekend. However, now I am suspicious and paranoid. I shot an e-mail to the advisor and asked him what (removed to protect members) relationship with Option One is. I also asked if we would incur any fees with them if they handled our loan modification.

Should I drop this completely, and start over by calling Option One loss mitigation directly?

Welcome to the forum and thank you for joining.....

Does not sound right to me...however some them are outsourcing their mods...call this person or e-mail to confirm that these are real representatives of Option One, do not trust anybody right now. I know by your post that you have, however, there is a chance that they are not telling the truth...professional skepticism...I have a lot of it these days...

I would drop the package like a hot potato and contact this person:

OPTION ONE CONTACT INFO



Amy Sessner Macedo

Homeownership Preservation Office-OCA

Customer Advocacy Specialist

(800) 704-0800 Ext 43782

Rightfax (866) 817-1620
amy.sessnermacedo@oomc.com

Let us know what she says in regard to this issue....I am curious, very curious...there are a lot of very nasty sharks in these waters today.

Just spoke with the legal side of Option One, they have not heard of these folks, would you please e-mail Moe with all of the details, name, address, e-mail addresses and phone numbers and have him forward it to me.

We will put a stop to it if they are not legitimate...

Moe's e-mail is moe@loansafe.org

[mindfreak]

Thank you, Poppy. I e-mailed the OOMC contact you provided to ask about this matter.

I couldn't agree more about not trusting anybody these days. Interestingly, the mortgage advisor has not responded to my e-mail about his company's relationship with Option One. Yet earlier this morning, he promptly responded to an e-mail on a different matter...

From now on, I will only deal with the contact person you provided. Thankfully, I've been reading this forum and listened to my gut before I got lied to and scammed again.

Thank you and everybody who posts here.

Please e-mail that data to Moe, there are things that can be done to stop this in it's tracks if it is not legitimate....

We do not want anyone else hurt, there is enough pain going around these days.

[mindfreak]

I will absolutely e-mail all of the information to Moe. I am all for shining the spotlight on these sharks and protecting others.

[mindfreak]

I just got an e-mail from the Robert, the loan specialist, answering my questions:

Robert,

I have a couple questions.

1. When we first received the letter about modifying our home loan, I thought the letter had come from Option One – not [deleted company name]. What is [company name]’s relationship with Option One?

His answer: We package up qualified loan modification for Option One.


2. Will we incur any expenses or fees in the form of commissions, or anything else, by working through you rather than Option One directly (which is what I had originally believed we were doing)?

His answer: Option One pays [company name] for each loan modification.

[Moe Bedard]

I got your email and I will wait for your fax. That should tell me more.

I have checked on these guys and everything to me is red flags that this is a scam of some sorts. You call the numbers and it's all generic. Their website says nada. He gave you an 800# that goes right to him and then you go to their website and there is a different number to a different weird answering machine.

It appears they are violating RESPA by impersonating their advertising to fool borrowers. This is against the law.

Moe send that stuff to me Option One will put a stop to it immediately...we have some real problems if we allow them to continue this, they have told me that they will shut it down.

[mindfreak]

Moe, I faxed you the letter.

I have it and read the fine print at the bottom they are....and I quote..."We are not an affiliate of, nor endorsed by, nor associated with, Option One Mortgage Corp."

Please send the e-mail that you received from Robert the scum sucker multi names that I can not use on the forum to me.....just forward the doggoned thing and I will also get that forwarded to the proper authorities at the Lender and to the State Level.....GGGRRRRRRRRR

Moe will tell you, Poppy gets real poopy when she is mad.....

[mindfreak]

If it were not for reading this forum, I might have fallen for the scam. My radar went up when I saw the loan mod app was not from Option One. Then I became really suspicious when my husband told me that Robert had left a message asking about the status of our packet.

After reading over and over about the persistence required to contact lenders and negotiate modifications, I couldn't believe we got a "just checking in" phone call. It felt like a too good to be true situation.

Thank you Moe and Poppy for stomping out these predators.

Sorry can not edit the title, have tried and appears that I am technically challenged.....

[mindfreak]

After the scamming attempt above, I am mentally drained and left to start at square one. I am now confused about which course of action to take. I don't know whether to fight for a loan modification or a short sale.

Unlike many people on this forum, we would prefer to sell the house. My job is a very long commute away, and because of that, I rent a studio apartment close to my job. I cannot get a job closer to my home - believe me I have tried.

We have paid all of our mortgage payments timely, and if we get a loan modification we could maintain that. However, the rent on my apartment is going up, as are gas prices. It is also difficult on me and my husband to have me living in a different city during the week.

The home loan is in my husband's name only. I know that a short sale would ding his credit. My credit is good. I understand that doing a short sale is a complicated process.

If we were to succeed in negotiating a loan modification, then we would ride out the market until we could hopefully break even on selling our house. While I understand nobody has a crystal ball, it appears from the reading I've done and the area I live that we may be stuck in this house for many years to come. That means I'll continue living out of a suitcase and paying rent.

I want to be responsible, but I feel like we are between a rock in a hard place. Do we fight for a modification to be able to afford to keep a home that is no longer practical, or do we pursue a short sale? I believe I may need an attorney's advice and will probably call the attorney advertised on this website for guidance. Any opinions?

[mindfreak]

I forgot to say that if we sold the house we would definitely go back to renting.

Short Sale is not the ding to the credit that foreclosure and Deed in Lieu are. So having said that they process for Short Sale and Modification are much the same, you do have to submit financial packages and support the hardship....you know the routine...

The Short Sale route involves a very experienced agent in the Short Sale arena that has your authorization with the lender to negotiate on your behalf. Be aware that the lender/servicer may want some of the "short" amount of the sale to be repaid by you outside of the secured loan position. They are taking unsecured notes with fairly manageable repayment terms at closing for that issue with all of the lenders.

So, the choice is yours and yours alone...do you want to Mod or Short Sale, neither will have the obnoxious effect/affect to your credit that the F/C and Deed in Lieu will. Actually Short Sale is pretty much a non-event on the credit up until now.

Here is a contact at Option One for you to contact and see what they are willing to entertain...all you can do is ask and the fear that you have now is the fear of the unknown, get it over with and know what you are dealing with...makes things so much more manageable. If you have questions after talking with them, please let us know....we are here to help as best we can. Call Marshall he is a good guy and will give you very practical advice.

OPTION ONE CONTACT INFO

Amy Sessner Macedo

Homeownership Preservation Office-OCA

Customer Advocacy Specialist

(800) 704-0800 Ext 43782

Rightfax (866) 817-1620
amy.sessnermacedo@oomc.com

[mindfreak]

Thank you, Poppy. I will contact Marshall's office tomorrow.

I have question about showing financial hardship. We have approximately $7500 in our bank account. The only reason we have this surplus is because my mother died suddenly last summer (yeah, it's been a rough year), and I received a modest sum from her life insurance. That enabled us to pay off credit cards and have some left over.

This may be a question for Marshall's office, but will this money show that we do not have sufficient hardship? I thought I would explain why we have this money in the harship letter.

Wait to chat with the appropriate person prior to reflecting any data on the Modification request, then...get the best and most informed advice that you can to minimize financial risk and exposure.

Come from an informed position to make decisions of this sort and do not risk your savings. I am so sorry to hear of your loss, you do not need this on top of that.

[mindfreak]

I need to make sure I understand the advice in your response. When you say to talk to an appropriate person, are you referring to an attorney? I'm thinking that you're suggesting that I not jump right in and tell Option One immediately I have the savings (although I would not lie on my financial report). Is there a person other than an attorney that would help me make an informed choice? A financial therapist? (just kidding - actually, Poppy, you are my de facto financial therapist!)

Financial Therapist....good that would be a new career, can you imagine the scammers on that one....

What a hoot, I need a laugh....really did...no the attorney is what I meant, before you go down the road of talking with Option One and if you want an opinion from or to retain an attorney, then do not do the self-help routine, see what you are told via the legal beagle to cover the @sspects of the issue. Always best to hold close to the vest and get the advice you need before you let any cats out of the bag, like money in the bank.....

[mindfreak]

Oh yes, I see a new cottage industry: Got too much money to show financial hardship, but not enough to pay your home loan? Let me relieve you of that stress

Thank you. I'll be in touch with the legal beagle.

Yeah sure and for that I have a bridge to sell you in Brooklyn....

Four years ago I could have gotten No Income, No Asset, No Employment financing on the damn thing too. With a salable inflated appraisal as well.

[elpjohnson]

Mindblown......

I have been following your thread since you posted your story a while back. I too have Option One as a lender and was upset with them because I didn't receive such a letter from them regarding a rate freeze or principal reduction. I am so glad that you found out it was a scam before you shelled out any cash to the scumbags who sent you the letter in the first place. I am just getting started on my loan modification, my loan doesn't adjust until August and I too have $7500 in my savings account.....what a coincidence huh? Also, I live about 45 minutes from you in Calaveras County...such a small world. I really just wanted to wish you luck in your situation and you and your family are in my prayers. Take care and keep us all posted on your situation.

[mindfreak]

Erika,

Thank you for your kind words and thoughts. They are much appreciated - truly. I am very glad to hear that this "land shark" did not come knocking at your door! Saturday night I felt spooked as the impact of what could have happened hit me. This land shark did not ask for any money. Nope, I believe he was after my identity and my husband's. Once he received our SSN's and financial info, he could have destroyed what we have left completely. I am thrilled that this shark is going to get harpooned.

What made this tricky for us to figure out is that one of the off shore reps had told my husband about 2 weeks prior that Option One would be sending out letters to borrowers in our situation about loan modifications. So when we got the letter, I thought that is what it was.

Again, thank you for your support, and my fingers are crossed for you as well.

[elpjohnson]

Wow! I am so happy that you caught it in time and if anyone can harpoon a shark it's Moe and Poppy!!! So, Option One did say that they would be mailing out mod letters? I sure hope so. Hopefully, we'll be able to get our payment at least frozen for 5 years so that we can save our home. Again, keep us posted on your progress and best of luck to you. God bless.