Wide Spread Loan alteration Abuse – Avoid Becoming a Victim
With so many people facing foreclosure today, thousands of loan alteration companies have emerged offering a financial lifeline. Unfortunately, most need big upfront fees, are not sufficiently educated in the industry to truly help, and may hurt by wasting valuable time and effort, or many companies (about 75%) are in the business to scam people. As stated by Illinois Attorney General Lisa Madigan…”If you are struggling to make your mortgage payments, or if you are facing foreclosure, stay away from anyone who says that they will save your home for money upfront”.
Loss Mitigation Specialist C. Thompson Sr (Nationwide Assistance, Clermont, FLA), has determined several tale tale signs of scamming by these companies:
- Charges a huge upfront fee– the purpose of the fee is to contact the lender to ask for a loan alteration. But, if turned down, only half the fee or none of the fee is returned. In these situations, there should be a money back guarantee.
- Will not explain the purpose of the fee- all sets should be explained and all questions answered.
- Is not interested in your circumstances– may not have your best interest at heart.
- Does not stop the foreclosure proceedings during the negotiation.
- Will accept the first proposal from the lender, which may not suit your circumstances.
- A virtual company-no real office- may not be a real company…
- Too good to be true– promises a fantastic interest rate or/and an exact rule reduction amount, without consulting the lender. No promises can be made without negtiating with the lender.
- No approval course of action-An approval course of action should be the first step in the alteration course of action, before a fee is paid. the time of action should not include credit qualification, and approval should not be made on the first phone call.
- Not a member of the Better Business Bureau.-they are not a leader in the industry.
Fortunately, you can avoid these scams. There are other avenues to pursue if you need assistance with your urgent mortgage problems. Consider a non-profit agency that will assist you without charging a fee, or a real estate licensee and an attorney who will work and allow payment after the work is completed. You can also acquire free advice and consultation for your refinance, loan alteration and foreclosure needs by several government agencies, including Hope NOW and FHA.
The information presented above applies to home refinancing and loan alteration abuse. However, if you are seriously looking to enhance your finances in general, visit authors’ area to find out more.