The thought of facing foreclosure and losing your home is a devastating feeling. Once you have reached the point of trying to find any possible option to keep your home, you are vulnerable to scam artists that will take advantage of that vulnerability. As a homeowner, you need to be informed about the signs of a loan scam and what you can do if you are scammed. Be alert and know the warning signs before you are faced with an even bigger financial crisis!
What are the Signs of a Loan Modification Scam?
You are asked to Pay A High Fee for The Services They Are Providing.
Once scammers feel as though they have your interest, they will then try and charge you an upfront fee for the services they will provide. Once they receive that upfront fee, the services they are offering will not take place, meaning they will withhold any further communication with you moving forward.
They Promise You A “Money-Back Guarantee.”
Be cautious of the companies that will promise you that there is a guarantee that you will be approved for a loan modification. Always remember that ONLY lenders can approve loan modification processes, and there is never a guarantee that it will be accepted.
You are Pressured to Sign Immediately.
Like any other scam, they will pressure you into signing up now and will urge you to act as soon as possible. You may be made to feel as though you have to take this option now or lose it.
Your Questions About The Information They Are Providing Are Avoided.
Scammers do not want to be asked in-depth questions that could expose their lack of knowledge on the topic. They will keep you from inquiring about any information from attorneys, housing counselors, or your lender.
They Will Ask You to Sign Papers That You Do Not Understand.
Always be vigilant and read ALL information before you sign any form of documents.
Steps you can take to avoid being the victim of a loan modification scammer.
- Research the company and testimonials or reviews from other clients.
- DO NOT pay any fees until the services have been provided.
- DO NOT provide any personal information.
- DO NOT sign any documents that you have not thoroughly reviewed and comprehend.
- NEVER stop making mortgage payments if you have been advised to do so.
- NEVER sell your home to them at a lower price.
- DO NOT transfer the title of your home to any loan modification company.
- NEVER ignore the letter you have received from your lender directly.
What to do if you have fallen victim to a scam.
If you feel as though you have already been the victim of a loan modification scam, you can report the business or individuals immediately. There are many ways that you can report scammers. You may contact the National Association of Attorney Generals as well as the Federal Trade Commission. Another way to report these crimes is by writing a complaint report and sending it to the Better Business Bureau or Consumer Finance Protection Bureau. If you feel as though this scam involves bankruptcy, another option would be to report it to your local U.S Trustee’s Office.
Do you feel you have been taken in by a loan modification scam? Feel as though you need advice from an attorney? Give the attorneys at Debt Rescue Law a call at (833) 707-1234 for a FREE consultation!