Loan Modification Scams
Many homeowners in America are worried about losing their homes due to extreme financial hardship. Between the housing markets crashing, unemployment at record highs and sub prime mortgage that were given out for several years, homeowners are looking for help. Unfortunately for these struggling homeowners they have more to worry about then just losing their home to foreclosure. Borrowers have to worry about trying to find options that their lender may be offering to help them stay in their homes. One of the most popular ways to get help to make the mortgage affordable is by getting approved for a loan modification. Loan modifications are so popular that the government even created a program called the Making Home Affordable Program and Obama is on TV telling the banks to help homeowners get approved for this.
There have been several companies formed over the past few years that claim they will help distressed homeowners, stop foreclosure and lower mortgage payments through loan modification and other services. Although there are a lot of good honest loan modification companies out there, it has become very hard to help as many people as we want to because of all the horror stories of homeowners being taken advantage of. Most people that we talk to have already been ripped off by one of these companies and they are more scared than ever to get the help they deserve. We are trying our hardest to teach homeowners what these scam companies will try to do to get their money. Here is a list of things a company should not do when attempting to assist a struggling homeowner get approved for a loan modification:
Loan modification companies should not:
1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may just take your money and do little or nothing to help you save your home from foreclosure.
2. A company pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it. You should always consult with an attorney before signing any contracts.
3. A company claims to offer "government-approved" or "official government" loan modifications. Some scam companies will pose as legitimate organizations approved by, or affiliated with, the government. A good honest loan modification company can show you how to get approved for the government program and they do not have to be affiliated with a government agency.
4. A company/person advises you to not pay your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. Some of the better companies may have an attorney trust account set up where mortgage payments can be held in escrow, if your lender is not accepting them.
5. A company/person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. The foreclosure process will continue until a permanent resolution is worked out with your lender.
6. A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or an honest loan modification company.
To watch a free video that will explain more about scam loan modification companies, you can click on this link and sign up and watch right now: http://www.loanmodificationmanagers.com/
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