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Is your Loan Modification Company legitimate?

5 Tips to Avoid Being Scammed - from the Office of the Attorney General of California (visit site)

I found these tips o the Office of the Attorney General’s website and thought they might be valuable to readers who are considering or are in the midst of loan modification. The website provides the capability to search for trustworthy resources.

1. Don’t pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
2. Don’t ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
3. 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.
4. Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
5. 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.

For further information visit the site. There you can enter the name of your Loan Modification company to see if they are a registered foreclosure consultant. Also, you can search for HUD-approved agencies here. If you have questions, feel free to contact me.

This entry was posted on Sunday, October 4th, 2009 at 5:00 pm and is filed under Short Sale - Avoiding Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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