The combination of a complex service, desperation of homowners who want the service and a new, totally open arena with little rules leave the possibility for scammers to exploit a situation that can supply a quick score. The foremost issue for the victims of loan modification scams usually isn't the money; it is the implications of wasted time and unmade mortgage payment that can lead to a foreclosure.
Going by the latest statistics, the frequency of loan modification scams remains relatively low. Yet, as home loan alterations solidify their standing as the most suitable option for drowning home owners attempting to head off foreclosure, avoiding the disreputable firms hasn't ever been more difficult. One reaction to the issue has been homeowners electing to take on the loan alteration process by themselves, which is turning out to be a mistake. Cheered on by legislators and some members of the media, the do it yourselfers have run into a brick wall of complicated loan documents, untrained customer service reps at the banks, and a method that requires a massive effort in time and energy. The horribly slow start of the Federal Government's (HASP) is being blamed both on the lenders for not being ready for the deluge of calls and bureaucracy and on householders making an attempt to secure loan modifications on mortgages they never understood all along.
Most tricks have originated at loan modification companies which are ordinarily filled with mortgage consultants that previously were selling the very same toxic mortgages in charge of beginning the mortgage collapse; shops that often have no licensing, legal wherewithal, or ability to modify a loan. There are usuallyseveral telltale signs the shop could be running a scam. The third is to modify the terms using an attorney guided process, which is turning out to be the best way to optimal results in a loan modification. Follow these steps:
-No office space - Without a legitimate stream of revenue, many scammers aren't interested in signing office lease contracts, providing a space, or investing the capital needed to run a serious business office.
-There could be an office but it is not much of one. Just about all the available space is dedicated to telephone jockeys and the atmosphere screams "boiler room". The rationale behind no or minimal office space is that most conmen understand that what they're doing is going to have a short shelf life which will mean moving on at some point in the future. Requests to go to a con-man's office are typically deal killers themselves, as the scammers will not want to meet directly with you. If a trip to an office is deterred, take it as a big warning sign.
-No verifiable references - A legitimate firm that has been in business long enough to understand the ropes will have loads of verifiable modifications. Most of the hucksters running cons won't have any verifiable proof of successful modifications to point to. In fact, they are not in it to modify loans.
-Selling materials that look like they are state issued - Mortgages are part of the public record and can be accessed by anybody that desires to do so. There are no federal or state agencies advertising for loan modification business.
-Affiliation with loan servicers - If a loan mod shop tells you that they are working, affiliated, or in association with your lender the red lights and buzzers should start ringing in your head. If you are still interested, confirm the loan modification representative's statements with your lender. -The hard "now or never" sell - if you are getting pressured to start the process because the loan mod company has been told by the lender that foreclosure is imminent, walk off. That sort of discussion between the lender and the loan modification company doesn't happen.
-Guarantees or guarantees of lowering loan balances - It's impossible to be certain ahead of time whether a loan balance reduction will happen before commencing the negotiation. There are far too many variables, like who owns the mortgage, to make a promise like that. This calender year, Q1/09 statistical data proved that 1.8% of all loan modifications included a reduced loan balance so, the bottom line is, you have a 1 in fifty chance.
Get the attorney's state bar number and check it out on the appropriate state bar website.
-See how long the firm has been involved in residential loan modifications.
-Request a list of references. An experienced company would be expected to have hundreds of successful modifications to highlight.
-Visit the office, or have somebody you know visit in your place.
-Should you be wrestling with credit card and/or consumer borrowing, ask if the firm couples residential loan modifications with debt reduction. The results from stacking the two processes can be very beneficial and powerful.
Doing some background checking goes a ways toward ensuring that you are ok with the firm that's going to represent you and ensure that you are going to get what you expected. The team at The Feldman Law Center, with over 600 successful loan modifications, has the knowledge and experience to deliver optimal results engineered to handle your personal needs. Call them at 877-MODZ-NOW (877-663-9669) or visit us at Feldman Law Center to find out what they can do for you and your loved ones.
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