Loan Modification Scams
Posted by admin on Aug 17, 2010Unfortunately there are lots of companies in the market that are deceiving the different persons who are owed by the banks. They ask different people to hire them for the loan modification and charge heavy fee. You authorize them and they represent you to your banker, result is that you lose all earnings of your life. If you want to be secured from these loan modification scams, you need to consider following points. These are the common features of companies who make loan modifications scams.
- They charge huge upfront fee. They will charge sometimes up to $7500 to contact your lender and ask for a loan modification. Sometimes they charge half of the amount of loan as their fee and sometimes they do not give you anything claiming that they have done their work and this is their right to charge their fee.
- Usually they charges upfront fee without telling you anything about the process. They do not seem interested in your special circumstances.
- If your home is in foreclosure and you hire them, they will not do anything to stop foreclosure but will charge their fee in the end.
- They are not the qualified professionals, so they do not care about their goodwill. They work for just formality so when you will hire them to negotiate from your lender, they will accept its first proposal putting your interest behind.
- You can also recognize a company who make loan modification scam by its real existence. A fraud will be working virtually, it will not have any real existence e.g. offices.
- They will guarantee you to reduce your principal amount or interest rate without even communicating with the lender.
- These companies will not have any rating from better business bureau. Better business bureau issues rating to those companies who are in the business for more than one year whether they are member of better business bureau or not.
So when you are contacting any of the company for loan modification you need to make a simple research and should contact with the leader in the industry. Following are some features of good companies that you should consider;
- They will be members of better business bureau.
- They will have past record of success.
- They must have passed my legitimacy test.
- They will have reasonable fee.
- They will give you money back guarantee.
- They will be structured and organized.
- They will have real existence.
- They will be in compliance with federal, legal and regulatory requirements.
- They will be helping home owners in the state where you are resident.
