Beware of Loan Modification Scams

With a large number of people seeking help to avoid foreclosure, the climate is right for loan modification scams. Anytime that people are in financial distress and looking for a resolution, it seems like there are always a few unscrupulous individuals out there to take advantage of the situation. The loan modification industry is no different.

If you need to have your mortgage modified, the best place to start is with your current lender. Almost all the major lenders have programs that will provide relief if you are experiencing a hardship. The lender would rather make modifications that will allow you to stay in your home than to have to go through the process of foreclosing on your home, especially with the number of people facing foreclosure at the current time.

It is important that you take the necessary time to properly research any company that you are considering getting help from to avoid foreclosure. Many of the companies that specialize in this service are new, because the need did not become abundant until recently. And there are a lot of scammers in this business. I hear it on the news every night.

Check with the Better Business Bureau. The state attorney general’s office is also another great resource. I actually find the internet better than either of these two sources. Forums offer excellent information when it comes to services. The community will tell you about both their good and their bad dealings with a company.

I also like the Ripoff Report. It can be found on the internet. People will document their unfavorable experiences with an organization. Other people may add entries about their experiences with the same company. I have also seen the service organization add rebuttals to the correspondence. At least you will get a general idea about the company you are about to give your money to.

The economy, at the current time, is ripe for scam artists to take advantage of people when they are most vulnerable. A person who is facing foreclosure is looking for answers and the scam artist will tell them exactly what they want to hear. It is important that you never give your mortgage payment to a third party. It is unfortunate, but if your lender cannot help you, it is not likely that anyone else will be able to either.

If you are looking for a loan modification you should start with your own lender. If they can not help you, they can give guidance as to what your options are in this case.