There has been a lot of talk about loan modifications and loan mod scams in the news lately. Recently, law firms as well as credit specialists have jumped headfirst into the fray, working with (or possibly preying) on good people in bad situations. While loan modifications are possible and can help many borrowers make it through these tough times, here are five tips to help you avoid a possible loan modification scam.
1. DON’T pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
2. DON’T ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
3. DON’T transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
4. DON’T pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
5. NEVER sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.
Courtesy of the State of California’s Attorney General, Department of Justice.
For more information, visit the Short Sales Center my website at http://www.JosephCapote.com.
Filed under: Seller's Blog, loan modification, loan modification scams, Short sales
Joe Capote 