Tips to Avoid Loan Modification Scams

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
5 Tips to Avoid Being Scammed

1. Don't pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.

2. Don't ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.

3. Don't transfer title or sell your house to a "foreclosure rescuer." Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.

4. Don't pay your mortgage payments to anyone other than your lender or loan servicer.
Mortgage consultants often keep the money for themselves.

5. Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org

Former & Future Renter

LoanSafe Member
Sep 24, 2010
6
0
1
Recently received some mailings from a company named Stead Law Firm promising to get you a big interest rate reduction or principal writedown by using their service. Called their number and although they promised the world, they would not guarantee any results. And the kicker is they wanted $4200 as a fee to begin the loan mod process. Run away from these types of offers.
 

Christopher Haner

LoanSafe Member
Sep 6, 2017
14
1
3
5 Tips to Avoid Being Scammed

1. Don't pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.

2. Don't ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.

3. Don't transfer title or sell your house to a "foreclosure rescuer." Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.

4. Don't pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.

5. Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.
Thanks for the tips. Can you also mention here about something other than these basic tips which would be helpful to avoid minute scams.