Loan Modifications

Warning: Do Not Ignore These Loan Modification Red Flags12 Aug

Loan Modification Scams

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Tough times call for tough measures. With the bleak economy and the wave of foreclosures, scoundrels will take advantage of people who are desperate or who lack the knowledge on how to handle their situation. Many of these rip-offs make money through loan modification scams. So if you are facing foreclosure, beware of people who offer too good to be true promises. It is a red flag of dishonesty.

You may have seen them on TV, the papers or radio and from the Internet through ads that promise you that they can absolutely rework your loan to make it more affordable. Some may have even discovered some means to get in touch with you and you are considering to take their offer. Before you sign up for anything or pay any upfront fees, consider these eight indicators of loan modification scams.

Loan Modification Scams Demand for Upfront Fees

From this alone, they are already breaking the law since foreclosure consultants and loan modification companies are prohibited from collecting any payments prior to delivery of their services.

Loan Modification Scams Will Ask You to Transfer Ownership of the House to their Firm

Common sense ought to make you think twice or even a hundred times about this request. Why should you agree to transfer the title of the property to them? It is akin to handing over your handbag to a robber without the robber pointing a gun at you. Do not be beguiled by their assurance that you will be able to repurchase or lease it.

Loan Modification Scams Will Advice You to Disregard Letters From Your Lenders

If there is one thing that you should be doing, it is to read the correspondence from lenders, get in touch with them, explain your hardship and try to negotiate for better terms.

Loan Modification Scams Will Ask You to Make Mortgage Payments to Their Company Instead of to Your Lender

Beware, you may find yourself in deeper trouble upon finding out that the payments you have sent to the so-called loan modification company did not make its way to your lenders. So if you are sending payments to your loan modification service provider, make sure that they disburse the payments to your lenders.

Loan Modification Scams Will Pressure You To Ink Documents Even If You Have Not Read Them Yet

When they use this ploy, they make you think that by signing these official documents, it is for your benefit. Unwittingly, you are, in fact, transferring ownership of your property to them. Do not fall victim to this flagrant act.

Loan Modification Scams Will Advice You Not To Take Counsel From An Attorney or Government-Approved Counselors

This is definitely a glaring red flag. What is wrong with consulting a lawyer or other counselors? When they do this, it is obvious that something is fishy. Consulting a lawyer or a government-approved counselor is what you may just need.

Loan Modification Scams Assure You of a Sure-Fire Loan Modification

If you have not yet discussed your situation with them, there is no way for them to determine whether or not you can get a loan modification, they cannot so much as tell whether or not a loan modification is right for you.

Loan modification scams are there for your money and nothing else, so before signing up for a loan modification service provider that you are not so familiar with, consider doing your research first about the company or better yet to learn about the process and try doing the tasks yourself in obtaining a loan modification.

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