Question: How do I avoid being a victim of a loan modification company if they really are just scamming people?
Answer: To avoid being a victim of a loan modification scam, I recommend you do some snooping around. I will outline 8 vital steps to take to avoid the scammers.
First of all, loan modifications are one of the best ways to stop foreclosure. The key to successful negotiations is how well you prepare the Request for Loan Modification Package.
Hiring a loan modification company or lawyer is not cheap. Expect to fork over $1,500 or more to prepare the package and negotiate for you. Whereas, you can do it yourself and save the money.
Mike Rockwood has modified five of his own loans, including his personal residence and investment property. He has created a top-notch workbook to walk you through the steps of fighting to get the best terms on your loan modification.
Click here to get proven help with your home loan modification
But first, here are 8 key steps you should take to verify you are working with professional, ethical, companies before signing any contracts and handing over any money:
8 steps to take to avoid being scammed by loan modification companies or attorneys
Step 1. Get 3 to 4 references or more of recent clients the company has helped. You want to call them on the phone and ask those past clients if they got good service; if they were successfully helped and so on.
The company may offer to give you written testimonials. You should still be able to verify that these are real clients to contact.
Step 2. Ask for copies of the approval letters or agreements they negotiated with the client’s lender. They can block out the client’s private information. You want to see the lender’s document looks real with an authorized signature approving the agreement with a real past client.
Step 3. Check to see how long they have been in business by calling the city where they should have a business license. If the company does not have a business license, that is not a good sign. If the company is new in business, you may not want to be their guinea pig.
Step 4. Contact the Better Business Bureau to see if there are any complaints on file against the company.
Step 5. If a representative makes a house call, ask for the company’s street address and drive by to make sure it really exists. Go inside; see who’s there; see if they look well staffed and organized. If you don’t get a good impression, just imagine the poor impression they will give to your lender, whom they are trying to negotiate with in your behalf.
Step 6. Be caution when it comes to paying in advance for services. If the company demands to get all their money upfront, that’s not a good sign. In fact, it’s a big red flag. Many states have laws that prohibit the collection of upfront fees with the exception of attorneys.
You even have to be careful with attorneys. Many law firms offering loan modification services are in the news being sued because the attorney mishandled the file.
Step 7. Google the company. See if their name shows up on any forums or scam-buster type websites that exposes their bad business practices.
Step 8. Interview 2 to 4 competing companies before making a decision. Don’t feel pressured to make a decision on the spot.
The bottom line is to verify who they are and what they have been able to accomplish for other clients and trust your gut. If you don’t feel comfortable, don’t hire them.
Before completing and sending in a loan modification package, you may want to obtain some coaching to combat the stall tactics banks/servicers are using to cut to the front of the line of other applications and get approved faster
Click here to get proven help with your home loan modification
One more important tip I want to give you is…
If the lender is giving you grief use three little words to fight foreclosure
If you are getting frustrated in dealing with your mortgage company or their servicing company and you need to buy some more time if the NOD has been filed, there is a little known method an attorney has shared with the public that delays the foreclosure proceedings.
It involves using three little words, namely, “produce the note,” to your lender or servicer. Asking them to “produce the note,” requires the lender to prove it has the actual authority to foreclose, by requiring it to officially produce the original promissory note in the lawsuit.
If you live in a “nonjudicial foreclosure” state, such as California, Texas, or the thirty or more other states with similar procedures, you can still use this strategy. The homeowner has to file a lawsuit against the party trying to foreclose.
| For more details on this strategy watch the video below | |
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
