Loan Modification Scams - How to Avoid Getting Ripped Off and Get Real Help
You might desperately need a loan modification to lower your payment so you can stay in your home-but before you fork over your last dollar to a company promising a 95% success rate, make sure you will not become a victim of loan mod fraud.
The sad truth is that many homeowners have been taken advantage of by predatory companies using the desperation of vulnerable homeowners to rake in big bucks.
Most of those homeowners never got a loan mod, and sadly lost there homes.
Help is available for qualified borrowers, you just need to know how to get it without paying thousands of dollars-here are some tips to help you get started.
President Obama and the Treasury Department is warning homeowners not to pay anyone an upfront fee to modify their loan.
The Home Affordable Plan is free to qualified borrowers, and their is information about how the program works and how to apply on the government website: makinghomeaffordable.
gov.
There are also numerous free counseling agencies that will offer to guide homeowners to find a home retention solution.
That being said, many borrowers feel overwhelmed and confused by the idea of a do it yourself loan modification.
That's not surprising-most people don't have much experience with loan paperwork and speaking with lenders.
So, when a company that promises to do it all for you-telling you that you don't have to worry about a thing-they have the experience and expertise to get you a loan modification-that sounds pretty tempting.
All you have to do is pay them-upfront-for a service with no guarantee, no time frame and no oversight! That is a recipe for trouble-and boy have there been reports of trouble! One company in California claimed a 95% success rate, claimed an attorney worked on your file, and took in about $12 million dollars in just 11 months-WOW! But the reality is that they only got a few modifications completed, an attorney never worked on any files and thousands of homeowners never even received a call back.
The FBI is now investigating and has seized their assets.
You can avoid loan modification scams by doing your research and becoming informed about what is involved in the process.
Yes, you do have to be proactive and take responsibility for saving your home.
You probably never thought you would be in this situation, but now that you are you must do what is necessary to try to save your home.
The federal government and state agencies are trying to shut down the illegal and predatory loan modification companies, but that will take time.
For now, you should begin learning the basics of applying for a loan modification so you can work directly with your lender.
It is getting easier everyday and with the federal programs available, you could qualify to have your interest rate reduced to as low as 2% for up to 40 years.
When you invest your time and energy you are actually paying yourself to modify your loan-and the results will be worth it!
The sad truth is that many homeowners have been taken advantage of by predatory companies using the desperation of vulnerable homeowners to rake in big bucks.
Most of those homeowners never got a loan mod, and sadly lost there homes.
Help is available for qualified borrowers, you just need to know how to get it without paying thousands of dollars-here are some tips to help you get started.
President Obama and the Treasury Department is warning homeowners not to pay anyone an upfront fee to modify their loan.
The Home Affordable Plan is free to qualified borrowers, and their is information about how the program works and how to apply on the government website: makinghomeaffordable.
gov.
There are also numerous free counseling agencies that will offer to guide homeowners to find a home retention solution.
That being said, many borrowers feel overwhelmed and confused by the idea of a do it yourself loan modification.
That's not surprising-most people don't have much experience with loan paperwork and speaking with lenders.
So, when a company that promises to do it all for you-telling you that you don't have to worry about a thing-they have the experience and expertise to get you a loan modification-that sounds pretty tempting.
All you have to do is pay them-upfront-for a service with no guarantee, no time frame and no oversight! That is a recipe for trouble-and boy have there been reports of trouble! One company in California claimed a 95% success rate, claimed an attorney worked on your file, and took in about $12 million dollars in just 11 months-WOW! But the reality is that they only got a few modifications completed, an attorney never worked on any files and thousands of homeowners never even received a call back.
The FBI is now investigating and has seized their assets.
You can avoid loan modification scams by doing your research and becoming informed about what is involved in the process.
Yes, you do have to be proactive and take responsibility for saving your home.
You probably never thought you would be in this situation, but now that you are you must do what is necessary to try to save your home.
The federal government and state agencies are trying to shut down the illegal and predatory loan modification companies, but that will take time.
For now, you should begin learning the basics of applying for a loan modification so you can work directly with your lender.
It is getting easier everyday and with the federal programs available, you could qualify to have your interest rate reduced to as low as 2% for up to 40 years.
When you invest your time and energy you are actually paying yourself to modify your loan-and the results will be worth it!
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