These 5 tips are courtesy of the California Office of Attorney General. Loan Modification Scam Alert
5 Tips to Avoid Being Scammed
- Don't pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
- Don't ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
- Don't transfer title or sell your house to a "foreclosure rescuer." Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
- Don't pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
- Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.
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As loan modification has become a common way of saving property from foreclosure, lots of scam companies have come up. When mortgage borrowers unknowingly contact these scam loan modification companies, they actually loose their money as well as their property in foreclosure. Thus, one of the best ways to avoid loan modification scam is to negotiate with the mortgage lender on your own in regards to this matter. The mortgage lender will look into your financial situation and let you know whether or not he will consider your request. You won’t have to pay any upfront money for it. And I definitely agree that no one should transfer property to the loan modification company come what may.
ReplyDeleteNice blog, I will follow those tips so that I can now prevent this kind of scams. It is not easy to prevent them without having this tips on this blog. Thanks for sharing it here. I will visit this again for more tips like in Bankruptcy, on how to prevent it. Thank you.
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