Home Loan Preservation company

[Sandy Peters]

I just attended a 1 1/2 hour spiel at the local library from this loan modification company called Home Loan Preservation(HLP). Having just heard Obama's "plan" I was curious to hear what they had to say. Anyone know of them or have any insight?

Here's the poop I got from the meeting. They recruit "consultants" to join their network and prequalify homeowners in need of loan modification. The consultant markets to find homeowners and once connected, inputs the homeowner's info into software HLP provides. Analysis is done real time to determine if the homeowner qualifies to move forward with a modification attempt and if so, the info is forwarded to a lawyer in the network. The lawyer will contact the homeowner and if they move forward with the modification the lawyer collects a $3000-$5000 up front fee (fee is higher for higher loan amounts) and handles the modification. Supposedly this does not violate foreclosure regs such as CA Civil code 1695 because a lawyer is handling the transaction and collecting the fee.

From that point all communication with the homeowner including any documents the homeowner provides is recorded on the site provided by HLP. They claim this provides all the transparency of all that was done for the homeowner should it ever come into question. In addition the homeowner can follow their status real time.

If the modification goes through the consultant collects $1000. There is an semi-MLM component which allows the consultant to recruit and train others and collect fees for those they've recruited.
If the modification doesn't go through the homeowner gets all of their money back (exception is if the homeowner isn't truthful with their info).

HLP was clear to say they are in the business of providing software that enables loan mods and not in the loan mod business.

The fee to become a business center (recruits agents) is $1000 and $249/month and to become an agent only is $69/mo. This of course is to pay for the maintenance of the software, online training, marketing, blah blah.

I asked why a homeowner would pay $3000-$5000 when a loan mod can be done for free and I got the answer I expected which was that they(well the lawyers) have such a high success rate and generally can negotiate a better deal than a homeowner could on their own.

I was also curious to find out what the "analysis" that qualified the homeowner consisted of but ran out of time. My suspicion is that if your temperature is at or near 98.6 degrees- you qualify.

Looking forward to hearing your comments.