LOAN MODIFICATION SCAMS IN WASHINGTON
Numerous Washington state residents have fallen victim to the mounting housing market crisis, with the majority of these homeowners undergoing hardships, including medical bills, divorce, loss of job, and unaffordable home loans. Avoiding loan modification scams should be the least of these borrowers' troubles. However, with a rise of dishonest and fraudulent operations, as well as increasing mortgage loan modification fraud, many homeowners do not know where to turn! [MSNBC, 5/28/2009]
Unfair or deceptive loan modification scams have plagued the mortgage industry, and deterred countless homeowners from seeking help. In lieu of such scandalous practices, the Federal Trade Commission is contemplating whether it should ban such for-profit companies from charging fees in advance of loan modifications and helping homeowners avoid foreclosure.
Federal and state government and the private sector are now targeting loan modification scams and foreclosure rescue fraud, which will allow for reputable loan modification companies to assist those who need it. While not every loan is fixable, the majority of homeowners can indeed find options to greatly improve their financial situation.
Options include interest rate reduction, foreclosure prevention, or acquiring a more affordable payment, as well as converting high variable rates to low fixed rates. Moreover, borrowers who found themselves in a worse position after refinancing or loan modification may be refunded the excessive fees charged by unscrupulous lenders and mortgage companies.
Free information and evaluation is available online, and in just a few seconds you can confirm whether or not you qualify for the Obama plan.
Most Washington homeowners now qualify for hundreds of dollars in monthly savings with a loan modification under the Obama administration's "Making Home Affordable" plan. Thanks to the HAMP program, a homeowner's mortgage payment cannot exceed 31% of their gross income, and because most home loans exceed 31%, the majority of borrowers are eligible for assistance.
Washington homeowners facing foreclosure, or about to be, should immediately begin exploring all the options available to them.