BEWARE LOAN MODIFICATION SCAMS

Just as there were predatory lenders, we are now seeing preditory loan modification practices.  I have first hand knowledge of this.  A woman I know was facing foreclosure.  She was referred to a lender who told her for $1,800.00 upfront he would stop the foreclosure and negotiate a loan modification directly with her lending institution.  Well, he telephoned her three days ago and told her that he was unsucessful and she would have to be out of her home by Tuesday, December 29th.  Not only that, he told her for an additional $5,500 he could take care of it.  This is shameful!  This guy totally took advantage of this woman.  She’s a single mom who works in the healthcare field — her mother lives with her as well. 

I told her to check her “contract” to see if there’s a clause about refunding her money if he is unsuccessful.  There was not.  PLEASE, PLEASE get the name of a reputable loan officer to handle your modification issues.  They should offer a full refund if they are unsuccessful.  Actually, when you first meet with this individual, he/she should be able to tell you immediately if they feel they will be successful.  I have it on good authority that any loan officer worth their salt will not take your case if they don’t think they can be successful.  The modifications are extremely time consuming.  Their ability to make money should depend on their success rate, not on how many people they can get to pay upfront with no guarantees.  You should also look for someone who has experience in this area, i.e., working within a financial insitution doing debt consolidation or loss mitigation.

BEWARE of these unscrupulous individuals.  However emotional this whole process is for you, get your thoughts together and don’t just jump at the first opportunity.  Make calls, get a referral from a reputable individual.  Many realtors know people who are honestly trying to help so don’t feel that you are alone. 

I personally know two gentlemen who are doing loan modifications and both can be trusted.  Let me know if you need assistance, I’d be happy to help!