Loan Modification Scams, asking for money upfront?
Doesn’t seem like the right thing to ask for the compensation upfront for services that have no guarantee to work, does it?
Anyone with solid information on loan modifications, please post.
Thanks.
Loan Modification FAQ
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Comments
90% of the companies are scams.
The loan sharks in another hat.
You can do this yourself, it is not hard. I am and have helped several people. Call your mortgage company and ask them to send you a modifications package. You will receive some forms to fill out and a list of documents they need.
Expect to fax it at least 3 times, they can’t seem to keep the paper together, but you will be assigned a person at the company to help you with this.
I do loan modifications. The most effective loan modifications come from homeowners who do them on their own while being persistent with first the negotiator and then the negotiator’s manager (even CEO if need be!). The other effective ones are from attorneys who use RESPA and TILA violations to leverage a modification.
I personally wouldn’t pay more than $1500 for this.
We also help home owners with loan modifications and only charge $395 if we are successful. Never pay up front especially because this is a process you can do yourself and we encourage people to do exactly that. There are a lot of shady people out there taking advantage of others. Be careful and good luck.
You get a loan modification from the company that owns or services the mortgage. While there may be a fee (shouldn’t be over 1/2 of 1%), it will be due when they consummate the paper work–not up front.
I wouldn’t give a dime up front to anyone and I wouldn’t work through anyone else.