Protect Yourself Against Loan Modification Scams

COSTA MESA, Calif. - Feb. 28, 2015 - PRLog -- Make sure the company has a real web-presence:

One of the easiest ways of verifying a company is to make sure they have a real web-presence & existing employees. Every trustworthy company should have a proper/legitimate location, professional website, accurate information, @company email accounts and live support. Consumers should look up the company to view their online presence and how they compare in terms of good will and positive publicity. Maybe they have a BBB profile you can check or they’ve had reputable media companies release articles about their service. Always scan for poor grammar and obtuse/fake legal language. If the latter doesn’t meet basic legitimate requirements, the company may have something to hide. Most unscrupulous companies have zero web-presence which means - they don’t even exist when you do a search on them. Some may also claim to have unverifiable government affiliations.

Observe how the company behaves and judge for yourself:

Are they organized? Are they knowledgeable? Are they diligent? Are they trying to work on your behalf? Look and ask for testimonials or examples of successful results. With loan modifications, you should never pay them hourly as it can easily rack up excessive charges that go against regulations. Certain companies will use shady words like “surcharge” to signify a mysterious charge that’s not part of the original contract. Some of these companies could be operating from overseas where there are cozy tax havens & corrupt governments. Never trust anyone who pressures you into a contract. Scam artists may use the ‘pressure technique’ to create a false sense of urgency that can make you lapse in judgement.

Always read the fine print and know your consumer rights:

Many of these unethical companies will come up with deliberately confusing contracts that no one can figure out (including the lawyers). Inside those contracts, there could be elusive loopholes that would allow for a corrupt, one-sided agreement in  the favor of the loan modification firm. The contracts AND the resolution process MUST always remain transparent and predictable. Knowing or being properly consulted on your consumer rights can save you from plunging into a financial abyss.

Don’t pay high upfront fees for loan modifications:

There is a reason why FTC implemented the Mortgage Assistance Relief Services (MARS) Rule. It was meant to protect distressed homeowners from mortgage relief scams that had sprung up during the mortgage crisis. The rule bans providers of mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have accepted a written offer from their lender or loan servicer. Any legitimate firm will actually have an approval process with a resolution center that would only accept those applicants who qualify based on a proper screening process. Either way, you should be provided at least a FREE consultation with no obligation.

Beware of false promises and unrealistic results:

As a common rule, if it’s too good to be true - it probably is. Unethical companies will quote you unrealistic interest rates that do not comply by the industry standard, let alone federal/state regulations. Refinancing, deferring payments and lowering interest rates on the loan while trying to extend the loan term to avoid a foreclosure is still within reasonable limits of ethical/legal standards. But to promise the moon and the stars would certainly set off a red flag. To protect yourself against crooks and shams, don’t be afraid to educate yourself on the best protective measures.

If you have any problems with your home mortgage, please consult with reputable firm like Colleagues In Law (advocacy) – http://www.colleaguesinlaw.org - 888-551-0223