Warning Signs for Loan Modification Scams

Lately, loan modification has been gaining popularity in the mortgage lending scene. There are various ways to use to use this modification process to change existing terms of the mortgages they currently hold.

Loan modification can sometimes work to your advantage but oftentimes it does not really rescue the homeowner from his or her mortgage miseries, so be aware of the loan modification scams out there.

Here are a few of the tell tale signs if a loan modification is a scam and hopefully it will help protect you and your home.

Warning Signs for Loan Modification Scams

If it demands an advance fee before anything can be done. No legitimate company that works with homeowners to avoid foreclosure will ever ask for cash in advance.

If the offer is too good to be true, when the person or the company guarantees that they can stop foreclosure once you get the loan modification with them, be skeptical once you get this offer. Nobody can ever guarantee someone that they can stop a property from foreclosure. Legitimate agencies will never make such promise, instead they will help you the best way they could.

Scammers are everywhere

If they advise you to stop paying your mortgage then it is likely a scam. Never trust anyone with your monthly mortgage payment, and if ever you have trouble with the monthly payment, contact your mortgage lender instead.

Be very suspicious if they ask you to sign over your property and in exchange they will pay for your mortgage and rent you back your home. If ever this happens and you sign over your home to them you might get evicted in the end.

Scammers are everywhere and they are just waiting to prey on innocent and vulnerable homeowners who are scared, ashamed and full of pride to ask for legitimate help because they don’t want their neighbors and friends to know that their home is about to be foreclosed. Don’t allow yourself to be a victim and always talk to your service provider and work out a solution.

Another warning sign scammers would do is they will ask you to stop communicating with your service provider because they know that you will find out the truth and legitimate way to saving your home.

Sometimes they would ask you to sign documents with blank lines or spaces. Always take time to read what the documents are all about.If you have not time then this site will help you. Never let anybody pressure you to signing anything you don’t understand or don’t agree.

If someone contacts you and starts pressuring you to take their offer, be on your guard because legitimate mortgage counselors will never do business that way.

If you encounter someone or a company with these signs,you have to read our post http://www.talkinghomeloans.com/to-fix-or-not-to-fix-that-is-the-question/ and report it right away to relevant agencies like the Federal Trade Commission and other local consumer protection offices.

Tagged with: , , , ,
Posted in Home Business Guide

Leave a Reply

Your email address will not be published. Required fields are marked *

*