Real Estate Financing

8 Tell Tale Signs of Loan Modification Fraud

December 18, 2010

Getting into trouble on your mortgage does happen a lot these days, but trying to be responsible and find a solution that you can afford, and that doesn’t totally bust the bank’s profit margin on the loan is really an acceptable solution to a tough problem. I applaud those that face these tough circumstances, yet do the best they can to retain their credit and integrity.

The issue comes in that many loan modification services are nothing more than scams, run by common criminals. Take a look at what Ms. Thompson says about it on her guide to avoiding loan modification scams:

75% of Loan modification companies are fraudulent or scam artists.

Can you believe it? 3/4 of the so-called companies out there just rob people of their money. She goes on to detail these 8 tell tale signs scammers often use in their deceptive processes. If the salesman or company presents any of these, it’s probably fraud:

  • Charges a huge upfront fee :
  • Collects upfront fee with out explaining the process, or does not seem interested in your circumstances .
  • Does not stop the foreclosure legally
  • Will accept the first proposal from the lender
  • Virtual Company:
  • Did someone promise you certain terms or rates for your loan modification?
  • Is there an approval process?
  • Can not find them on the BBB, or anywhere else for that matter.

Further, you can seek professional help in the way of hiring an attorney, and they can usually do a much better job than going-it-alone. Attorneys tend to be much better in negotiation, and just having their presence tells your lender (or potential loan modification company) that you mean business. Bottom line, be careful…there are a lot of sharks out there!

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