Loan Modification and the Scams Involving it
Posted on March 9, 2010
Filed Under Foreclosure investing |
The growing economic pinch has everyone scrambling to secure their finances as best as they can, and that includes trying to make sure they donât lose the roof over their heads, considering that foreclosure was already a grave threat on families even before the recent recession. People have increasingly turned to loan modification as the primary means to try to save their homes from foreclosure, but it seems that there are some unscrupulous individuals who see this last ditch effort to save homes as an opportunity to scam already desperate people.
People needing a loan modification, already pretty much distraught and willing to cling on to whatever little sliver of hope they can see just to save their homes, are just ripe for the picking for scam artists and snake oil peddlers. All that is needed are some well-written and rehearsed pitches to get them to sign on for what they think is a chance to evade foreclosure on their home, by investing whatever little money they have left in a fake loan modification deal perpetrated by crooks who are not in the least bothered by stealing from frantic people already steeped in debt.
These scammers will ask for an exorbitant upfront fee, supposedly to work out a loan modification for the person seeking it, with a bogus guarantee of returning half the amount in the event of failure in the deal. These scammers will then claim to have already contacted the mortgage company or the lender to work out the deal, but add that, unfortunately, the deal wasnât successful. They will then claim half of the upfront fee they charged you, and then return the other half, having already put the person into a deeper hole than what they were already in before the deal.
These scammers can be found virtually everywhere, even online. They will try to lure unwitting victims with spectacular stories of success in securing a loan modification and just how many homes they had managed to save from foreclosure. In many cases, they are so good in pretending to be legitimate that it is almost impossible to tell if they are scammers or not. One sure way is to try and consult with a real estate lawyer. Be sure, however, to seek out a real estate lawyer that is versed on the issue of loan modification. It is also a great help if the lawyer you happen to consult with is quite familiar with the Real Estate Settlement Procedures Act, as well as in the Truth in lending Act, primarily so that they can speak the language of the lenders.
To make things easier, however, look for a legitimate firm offering a decent loan modification procedure. It pays to study any firm or service you are about to contract, as most scams are quite transparent under close scrutiny. Most scams are only able to fly because of the haste most people practice, precluding any attempts at a close look at the legitimacy of the service. Hence, it pays to really look through and think over anything before fully committing to it.
Rico Franco
http://www.articlesbase.com/loans-articles/loan-modification-and-the-scams-involving-it-731195.html
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