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8 Ways To Spot Loan Modification Scams

8 Ways To Spot Loan Modification Scams by Mortgage Assistance Group

The foreclosure crisis is still effecting a large part of our economic return to normalcy and it seems government help and lender assistance hasn’t exactly cured been able to promote a equitable and attainable solution for the average homeowner who may be facing foreclosure.

For this reason, many homeowners are “fixing” a private market problem, with a private market solution. That is that they are hiring professional debt negotiators to restructure their current loans so that they can stop foreclosure and keep their homes.

In order to reduce the foreclosure epidemic, states like California have implemented strict guidelines for modification companies to abide by. The loan modification industry as a whole however is still tainted with “pop up” expert modification companies who are here today and gone tomorrow.

We wanted to take the time to educate those who are searching for help and may not be able to tell a “good company” from a “bad” one.

If the company passes this list and you can afford their service fee, chances are your keeping your home.

Avoid loan modification scams by making sure the company you hire has…

1. Where Are They – A physical address, not a po box, and in an office complex or shopping center. You don’t want to do business with a company that is in a house or garage do you?

2. Credentials – Check to see if the company is registered with agencies such as the Better Business Bureau, this will ensure that any bad behaviour will be public and hopefully the rating in the B range or above.

3. Refunds – A money back refund of some type, even if it is partial is a good thing. Now hopefully you will not have to excercise this right and you will get what you paid for, a loan modification. Having something to fall back on protects your best interests.
4. I Fought The Law, With The Law – An on staff attorney, this is a plus, this person will ensure that the company processing your modification follows regulatory laws and guidelines and may even assist with negotiating on your case.

5. Who Did You Hire – Be sure the company you hire uses in house processors and negotiators. Why? Because all to often many companies will outsource your file to yet another company to do the dirty work and this leaves room for getting lost in translation. Some companies may have even set up a customer service department that will touch base with you as your file progresses.

6. Longevity – Although a loan modification is nothing new, the process has become more popular as the economy took a turn just over 2 years ago. So how long have they been in business. Two years or more?  This tells you that they have the knowledge and experience to handle your file and that they have done been  homeowners a service and saved their homes. You don’t want to hire an inexperience fly-by-night company to deal with your most important assets do you?

7. Ma’am Your New Payment is $552.01 a Month – Trained mortgage modification specialists that will answer any questions you may have however WILL NOT GUARANTEE SPECIFIC RESULTS. This is because they simply can not. Only the lender can dictate the end interest rate, payment and terms. For example if a company promises you an interest rate of 4%, at a new monthly payment of $601.01 and a principal reduction of $12,543, RUN FOR THE HILLS.

8. Payment Options – A good sign that you’re dealing with a legitimate company is if they offer flexible payment options. Either pay-as-you go or partial down payment help. If the company your speaking has a fee of $3995 and does not offer any type of payment options, this could be a sign of fraud or poor customer service. We are in a recession you know and homeowners shouldn’t have to go broke just to get help. Most homeowners understand that a company needs to collect a fee of some type to keep the doors open but simply cannot afford to pay so much up front.

Need more information?

About the Author

Stan is CEO/Owner of Mortgage Assistance Group

623-486-4505

http://www.mortgageassistancegroup-az.com

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