How To Determine If A Company Specializes In Loan Modification Fraud
- Date: 2009-10-30 - Word Count: 449
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It is sad to think that there are still a lot of companies who do loan modification scams on people who are currently deep in debt. It is even more unfortunate that even if the country is already experiencing a traumatic downfall in the economy, these companies still have the nerve to steal and fool its customers. What's more disgraceful is the fact that there are a lot of scam companies which are still operating. Either they promise a guaranteed result or they have incredibly low interest rates to attract the customers. Here are some tips on how to avoid these companies:
The number one sign that the company is a scam is when they initiate the contact with you. Normally, these scammers are contacting innocent individuals through flyers, phone, or mail. They will usually target the unsuspecting homeowner who is either rich or poor. As long as these companies can get some money from you, you are marked as a potential target already.
After initially contacting you, one of the biggest indicators that these companies are scam is because they will require an upfront fee from you. Since there are a lot of people who are having trouble with paying their mortgage, these scammers will adjust an amount to your rate which they will think that you will pay just so they could get started on processing your loan modification application. Some of them would even claim that these are lowered special deals just so to attract innocent customers. Once they get your money, they will suddenly disappear. But there are also some instances that they will request extra money from you later on by giving you reasons such as the lender needs a deposit where he can hold trust. Of course, this is an obvious lie because it is going straight to their pocket. There are also some companies which will tell you to stop paying your current home mortgage so that the lender will take extra interest in your situation.
But let's not generalize every loan modification company. There are really some which are eager to help you save your home. The first difference with such companies is that legitimate companies will not charge you for an initial consultation although they will charge it later on. If you really want to get free help, you can try reaching the FHA representatives although they will be hard to contact since the demand for them is very high.
It is important to protect yourself from scam companies. Before you make a commitment to any company, it is first important to check the company's background so you know that you are not dealing with companies which are loan modification scams.
The number one sign that the company is a scam is when they initiate the contact with you. Normally, these scammers are contacting innocent individuals through flyers, phone, or mail. They will usually target the unsuspecting homeowner who is either rich or poor. As long as these companies can get some money from you, you are marked as a potential target already.
After initially contacting you, one of the biggest indicators that these companies are scam is because they will require an upfront fee from you. Since there are a lot of people who are having trouble with paying their mortgage, these scammers will adjust an amount to your rate which they will think that you will pay just so they could get started on processing your loan modification application. Some of them would even claim that these are lowered special deals just so to attract innocent customers. Once they get your money, they will suddenly disappear. But there are also some instances that they will request extra money from you later on by giving you reasons such as the lender needs a deposit where he can hold trust. Of course, this is an obvious lie because it is going straight to their pocket. There are also some companies which will tell you to stop paying your current home mortgage so that the lender will take extra interest in your situation.
But let's not generalize every loan modification company. There are really some which are eager to help you save your home. The first difference with such companies is that legitimate companies will not charge you for an initial consultation although they will charge it later on. If you really want to get free help, you can try reaching the FHA representatives although they will be hard to contact since the demand for them is very high.
It is important to protect yourself from scam companies. Before you make a commitment to any company, it is first important to check the company's background so you know that you are not dealing with companies which are loan modification scams.
Related Tags: loan modifications, home loan modification, mortgage modifications, loan modification fraud
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