How to Spot Loan Modification Scams
If you are considering a loan modification, be sure to watch out for companies that want to charge you! In today’s housing market, 4 out of 10 homes are upside down on their mortgage. Most people looking to salvage their home owe more than the home is worth. Keep a look out for con artists that take advantage of this financial crisis and downward housing market.
Here are the 6 Tips to avoid Loan Modification Scams:
1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
2. A company/person guarantees they can stop a foreclosure or get your loan modified.
3. A company/person you don’t know asks you to release personal financial information online or over the phone.
4. A company claims to offer "government-approved" or "official government" loan modifications.
5. 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.
6. A company/person advises you to stop paying your mortgage company and pay them instead.
Remember, no one can guarantee you a loan modification or a successful short sale. Real estate agents can only try their best and ultimately it is the bank’s decision.
3 out of 5 Mortgages in Default in Orange County are actually able to sell their home in a short sale, many times after they have been denied a loan modification. The key to having a successful loan modification is to have time on your side by taking action before it is too late. You can work with your lender to achieve some relief for your financial hardship.
Click Here for a list of the 14 items necessary for a loan modification package
Featured Properties
Market Trends Reports
