There are millions of struggling borrowers that are still holding on to their dreams or constantly reading expert authors to fuel them. They are fighting to not be thrown in crisis of foreclosures and being homeless.
Loan modification predators sense desperation easily. Others get or buy leads via under-the-table negotiations to go after potential victims. This burgeoning number is an opportunity for illegitimate transactions to surface. Who can resist lower monthly fees and better interest rates in a short period of time? Fraudulent activities are supported by the use of the following:
- Fake loan modification portfolio that bears false promises of an attractive Federal stimulus to aid distressed homeowners who are having trouble paying mortgage accordingly
- Counterfeit documents
- Loans to buy non-existing properties
- Straw buyers (individuals who make purchases on behalf of another person) with misleading income and employment data
Hundreds of homeowners can easily fall into these traps. But, before you take a step further into getting a home modification, there are important points you need to ponder on.
Be skeptical on upfront payments
People who have fallen into the wrongful hands would often relate that they were asked for $2,500 to $3000 upfront payments. Government agencies and legitimate institutions will NEVER ask for request fees or any upfront payments under any circumstances.
Start getting suspicious if anyone starts making such demands from you.
Ignore promising shortcuts
Your problems with foreclosures will not disappear overnight. The battle is a lengthy and difficult process. Anyone who claims otherwise could be a potential swindler.
You have to remember two things:
- mortgage servicer has the power to stop foreclosure
- lender can guarantee home loan modification
Veer away from those who are offering to “collect” mortgage payments while negotiations with a lender are happening. After several months, such companies are nowhere to be found.
Never transfer property deed
NEVER (capitalization done for strong emphasis!) give the title to a new borrower because he has a better credit standing that can secure better financing options. You might wake up the next morning, your home is already sold to someone else. You just expedited your agony here.
Usual modus would be to lure the homeowner to transfer property deed of an at-risk home. The homeowner will not be given the suggestion to rent it out.
Professional and proficient help
If you are savvy enough and have all the time in the world to that you are not dealing with the bad guys, by all means, lead your own transaction. Otherwise, it might save you more if you ask help from professionals.
Depending on your need, you may have to pay $2,500 for an attorney. This money can be well-spent versus paying upfront payments to certain bank accounts that will be unmasked as scammers in the end.
Attorneys that can aid you with home loan modifications in Wellington FL can be hired with no forthright fees.
Uncovering the lender
You may have been presented with attractive home loan modification plan and services. But, you have to verify who the lender is. Feel free to ask the main number of the agency for you to validate the call’s legitimacy.
You can seek help from the National Treasury or local government unit for authentication purposes. These scammers do not set up shops in federal buildings.
It is also highly recommended that you stick with government-affiliated websites – those with .gov domain names.
CC the politicians
When sending documents, always CC your congressman or senator. No false lender would want to be in the headlines and unravel their fraudulent schemes in public. You can always give this a try. It can work.
Leave a paper trail
It’s easier to investigate when everything is documented. It will also send a signal to a fake lender that you know your stuff and that they may not be able to easily get away from their scam.
Get a correspondence or document conversations every single time. Make this individual aware that you are doing so.
Instead of noodling around the internet and looking for websites of potentially legit loan servicers, why don’t you reach out for friends or relatives who have found success in loan modifications. They will be able to direct you to correct individuals that can genuinely be of help.
The thicket of paperwork and separating the good guys from the culprits can prove to be pointblank daunting. Take a few steps to ensure that you will seek help from people and institutions with your interests in mind.
It’s Your Turn!
Do you know anyone who became a victim of home loan modification scammers? What are other options that you can think of to help you redeem yourself from missed payments on mortgages? I have found that having home loan modifications is a lot easier and there are tons of home loan specialists or consultants who can help me avoid scammers.
The comment box below will be waiting for your stories, comments, suggestions and thoughts.
Photo Credit: Flickr/TheTruthAbout