Home Loan Modification Scams to Be Aware Of
In the article, BEWARE THE LOAN MODIFICATION MERRY-GO-ROUND on Red Tape Chronicles, the journalist does an excellent job of laying out why so many who are seeking to lower their mortgage payments are turning to so-called, “for profit” loan modification companies.
Many consumers are frustrated trying to deal with their lenders directly — as they tend to get nowhere, or are passed around for months or weeks on end — with no forthcoming loan modification in sight. So, when you see a “legitimate company” advertising on TV making it seem so easy, yu take a shot — even if it costs you several hundred or thousand dollars. The consumer profiled in the aforementioned article forked over almost $3,000 to one of the loan modifcation companies.
Free Government Home Loan Modification Help — If You Can Be Patient
There is free help available via government agencies. However, they have been poorly staffed and manned. Simply getting in touch with a qualified home loan modification specialist via one of these programs can be a chore. This has created a perfect storm, so to speak, for these loan modification companies to sprout up and take advantage of customers. The article notes:
. . . our government is failing . . . The government says go get a housing counselor, but when you make a call there is not always somebody there. . . . [And] Many consumers have hit similar brick walls when dealing with lenders, . . creating an ideal opportunity for loan modification con artists.
Legitimate Home Loan Modification Sites/Organizations
FinancialStability.Gov: This the site that has info on the White House’s new loan modification plan
Get Home Loan Modification Advice from Reputable Industry Professionals
Be sure to read the comments section of the article mentioned above. It has some great advice from industry professionals (eg, legitimate loan modificatoin companies, mortgage prfoessionals, real estate professionals, attorneys, etc.) as well as first-hand advice from homeowners about good home loan modification companies and bad ones.