Mortgage loan modification: 7 Tips to avoid scams

Are you experiencing a lot of trouble to stay current on your mortgage payments? If yes, then you can take help of mortgage loan modification to restructure your payment agreement with revised terms and interest rates. Often termed simply as loan modification, a mortgage modification is always a better alternative than facing foreclosure or filing a bankruptcy. However, avoid being a victim of a loan modification scam while trying to modify the terms and conditions of your existing mortgage.

7 Tips to avoid loan modification scams

Always be cautious if someone offers help to modify the terms and conditions of your mortgage. You don’t require any third party help in order to work with your lender. Go through the following lines to know how to avoid a loan modification scam.

1. Take help of an attorney: It is not mandatory to take help of a loan modification company in order to modify your mortgage. If required, take help of an attorney who is well versed in the entire loan modification process.
2. Avoid services like ‘guaranteed results’: Even if you take help of a loan modification company, do not pay heed to services that claim to offer ‘guaranteed results’. You should always remember that a bank or a lender has the sole authority to modify your mortgage. Therefore, it is better if you talk directly with your lender to know about the mortgage modification process.
3. Check the company’s reputation: Always check the company’s reputation before signing the dotted line. A reputed company will provide you with the successful history of its customers. Therefore, if a company refuses to give the list of references, then you should look for other companies without wasting any more time.You should also check the company’s reputation with BBB (Better Business Bureau) in order to verify whether or not there are any complaints against it. It will help you to select a good company and also avoid being a victim of a loan modification scam.
4. Make sure of the services offered: Before enrolling yourself, enquire how much you’ll be able to save. If it is a reputable company, then it’ll give you a fair estimate of how much you can save through mortgage modification. Apart from this, get answers to all your queries before you decide to take professional help from them.
5. Don’t give any upfront fees: A good loan modification company should analyze your case absolutely free of cost. Therefore, a company should not ask anything for consultation and you should consider other options if it asks for any upfront payment before providing the service.
6. Get everything in writing: Oral agreements and promises are not legally binding. Therefore, protect your rights with a written contract and get it signed by the person representing the loan medication company.
7. Pay your lender directly: It is advisable that you don’t let anyone make the mortgage payments on your behalf. Always pay your lender directly.

If you fall prey to loan modification scams, then contact a lawyer right away. An attorney can provide you with the assistance to find a way out. It may also happen that you’re suspecting a scam. In this situation, report it to the State Attorney General’s office, to the Federal Trade Commission or to the local consumer protection agencies. By reporting suspicious loan modification schemes and scam artists, you can save others from falling prey to a mortgage loan modification scam.