Anytime homeowners are thinking about modifying the terms of their home loans, it is important that they work with a credible loan modification company for numerous reasons:

Experience. Most people do not possess the experience it takes to successfully complete the loan modification process.  In fact, the majority of people who choose do-it-yourself loan modifications never complete the process.  However, when homeowners work with experienced loan modification companies, such as American Economic Solutions, they are able to successfully modify their home loans and obtain favorable terms from their lenders.

Knowledge. The majority of homeowners do not the same level of knowledge as loan modification companies do.  Additionally, most homeowners are not aware of all the federal loan modification programs that exist or even how to apply for these programs, which is why working with a company that specializes in home loan modification is crucial.

Relationships. Homeowners usually do not have established relationships with their mortgage lenders, which can make it difficult to enter into negotiations or get the best rates on their home loans.  At American Economic Solutions, we have worked tirelessly to build relationships with large lenders, like Bank of America and ING, and our relationships always benefit our clients.

Time. Anytime homeowners choose to pursue mortgage modifications on their own, they not also waste a great deal of money, but also a lot of time.  However, when homeowners work with American Economic Solutions, they are often amazed at how quickly we are able to modify their loans and they avoid wasting precious time.

Rates. The primary reason homeowners seek loan modification is to lower their monthly payments and to reduce interest rates.  Yet, the vast majority of homeowners do know have the experience, skills or abilities to get the best terms possible and this is why working with a loan modification company is so important.  At American Economic Solutions, we have helped innumerable homeowners get the lowest rates on their home loans, reducing their monthly mortgage payments and helping them save a ton of money.

Need assistance with loan modification?  Contact our knowledgeable specialists now!



The government has spent tons to bail out banks during the economic crisis, but according to middle class America, big banks are doing very little to help the average American.  Due to the increase in unemployment and a weak economy, more and more homeowners are finding it hard to make ends meet and pay their mortgages.  In fact, at this time, 6.5 million homeowners in the U.S. are behind on their mortgages.

Despite lofty promises banks made when the government bailout came into play, countless Americans say that they have been given little help and are now on the verge of losing their homes.  Of the 1.1 million Americans that have requested federal assistance, only 168,000 have been helped by banks, the very institutions that promised to give Americans the assistance they needed to recover from economic hardships.

A few days ago, ABC News published a story entitled Whistle-Blower: Banks Give Homeowners the Runaround.  To go along with the story, the news station casted a poll and the results were quite alarming.  According to the poll results, 60% of people feel that banks are not doing enough to help struggling Americans.

ABC News’ story revolves around an insider who works at a very large financial institution.  If you think he is a low man on the totem pole – you are wrong.  The insider reports that he has worked at one of the biggest banks in the U.S. for over 20 years and is a Vice President.  Deeply bothered by the bank’s response to struggling homeowners, the Vice President decided to come forward and discuss how the bank is giving the runaround to people who are in desperate need of assistance.

According to the informant, people who call the bank for assistance with loan modifications or with lowering their monthly mortgage payments are told to call an 800 number.  However, instead of answering homeowners’ questions and lending assistance, bank representatives simply give callers the runaround.

He also told ABC News that, “In our managers meeting, which can last eight or nine hours, we probably addressed mortgage modifications five minutes or less.”  When asked how many loan modifications his bank has completed in the last year, he responded, “Fully completed?  Zero.”

After getting the runaround, many homeowners come to the informant in tears and are deathly afraid.  Not to mention, these homeowners often have to deal with astounding late fees and penalties, as well as the fear of losing their homes.  Each year, it is estimated that banks receive $40 billion in penalties and late fees alone, which proves these institutions are more focused on capitalizing instead of giving much needed assistance.

If the government does not intercede and banks continue to hold all the power, the middle class will continue to face difficult times.  In fact, some question how the middle class will even survive.

If you are finding it difficult to get a loan modification, contact the friendly staff at American Economic Solutions.  We would be happy to work with you and to provide you with dependable help when you need it most!

Watch full story from ABC News: http://abcnews.go.com/WN/saving-middle-class-whistle-blower-banks-helping-americans/story?id=10178938

On February 8, the California section of Real Estate Rama posted an article entitled “New Research Shows Red-lining in Five California Cities”.  According to the article, predatory lending is hitting cities in California that have a high Latino or African American population.  The article, which cites a report by the California Reinvestment Coalition, asserts that many banks have failed to prevent foreclosures and that there is a high denial rate for home loans amongst the Latino and African American populations.

The report produced by the California Reinvestment Coalition examined the practices of banks, including large mortgage financiers, in five California cities over the past three years.  The cities surveyed were:  Los Angeles, Oakland, Sacramento, San Diego and Stockton. 

After the study concluded, the California Reinvestment Coalition discovered that there were a high amount of predatory home loans and defaults, specifically within the Latino and African American communities.  The study also revealed that the amount of loan modifications and new prime loans were very low compared to other ethnicities and neighborhoods.

The report from the California Reinvestment Coalition brings to light four main points.  First, mortgage lenders in California have saturated communities with high-cost predatory loans.  Second, a large number of foreclosures have resulted from predatory lending practices.  Third, the majority of mortgage lenders are not working with families to prevent foreclosures.  Finally, mortgage lenders are denying home loans and loan modifications to a high number of applicants in the Latino and African American communities.

Kevin Stein, associate director of the California Reinvestment Coalition, said, “The data confirm what we have heard from housing counselors and borrowers—that banks aren’t meeting their commitments to help families stay in their homes, and that this is further destabilizing California communities.”

At American Economic Solutions, we feel these are bad banking practices that must be stopped immediately.  With the number of foreclosures already being so high and California’s staggering unemployment rate, we find it disconcerting that banks are choosing to deny select communities credit. For too long, mortgage lenders have been taking advantage of homeowners’ lack of knowledge. A lot of these mortgages were issued while homeowners were under duress and looking for options. 

The reality is, the government has been taking care of the banks, but banks are not taking care of homeowners. Lenders received billions, if not trillions, in assistance from the government.  Historically, lenders have been very conservative, but they very liberally took the government’s money.  Instead of passing the savings and money onto homeowners who need it the most, they pocketed it, leaving countless people homeless and economically devastated.

Read full story from Real Estate Rama – California….

One of the biggest challenges homeowners are facing in today’s economy is paying their mortgages.  Last year, over 2 million individuals in the U.S. went through foreclosure (RealtyTrac) and in 2010, another foreclosure wave is expected to hit consumers.

Due to the overwhelming amount of foreclosures, many homeowners are pursuing alternatives in order to keep their homes.  One of leading alternative is loan modification programs.  While loan modification programs are known for helping consumers lower their interest rates, increase loan lengths, eliminate penalties and make lower monthly mortgage payments, the sad reality is that many loan modification programs are offered by fraudulent companies that make money y taking advantage of homeowners.

At American Economic Solutions, we know that loan modifications are a viable option for homeowners, but we also know that if homeowners work with the wrong company or fall prey to predatory mortgage lenders, agents or attorneys, they may wind up in worse predicaments.

Therefore, it is important that homeowners work with a loan modification company that:

• Does not charge upfront fees.  At AES, we charge zero advance fees for loan modifications.
• Is legally compliant.  American Economic Solutions is not only legally compliant, but also SB94 compliant.
• Has years of experience.  The AES team has over 20 years of finance, mortgage and real estate experience.  Some of our team member have Department of Real Estate licenses in multiple states and are Certified Mortgage Planning Specialists.
• Has great standing with the Better Business Bureau.  AES has an upstanding history with the BBB.

These are all qualities that American Economic Solutions has.  At AES, we aim to keep our clients in their homes by offering dependable loan modification programs that are effective and ethical.  Contact us today to learn how our loan modification programs can help you save your home.

For more tips on finding the right loan modification company, check our recent article on eHow.